Search
Advertisement
| Digg | Facebook | Stumble It! | Delicious del.icio.us | Fark
E-mail | Print
Jun 13, 2008 10:51 am US/Pacific

Savings Bonds

QUESTION: Should I invest in savings bonds for my kids' educations or contribute to an educational savings plan (a 529)?

ANSWER: If you are funding higher education, I prefer the 529 plan. However, I also like the Roth IRA as a vehicle to fund college education. By using the Roth IRA, you are able to save additional dollars for your retirement in the event your child does not go to college.

However, if the child does go to college, the Roth IRA allows for distributions of all deposits no matter what age the individual is, with no tax consequences. This would allow you to fund college education with the deposits from your Roth IRA.

If you are already funding Roth IRAs, I would then suggest funding the 529 plan.
_____________________

Money Matters is provided by:

David Schauer, CFA, MSFA, CFP®
Financial Planner
Hanson McClain
E-mail questions to moneymatters@kovr.com

(© MMVIII, CBS Broadcasting Inc. All Rights Reserved.)

From Our Partners

© MMVIII Sacramento Television Stations Inc. All rights reserved.