|By Flchagani (Flchagani) on Thursday, September 23, 2004 - 07:31 pm: Edit|
I am a father of a son who wants to go to a school that costs an arm and a leg (about 40 grand). Anyway, I am thinking about taking my funds out of a 529 plan and into a 6 month CD offering 4.95% interest. However, its a foreign bank (hence, not FDIC insured). DO you think I should do it? I feel that I can get a larger yield with it. Please give suggestions.
|By Flchagani (Flchagani) on Tuesday, September 28, 2004 - 09:53 pm: Edit|
|By Thumper1 (Thumper1) on Thursday, September 30, 2004 - 05:17 pm: Edit|
Do you want an opinion? Well...I would NOT pull money out of a 529 account and put them into any foreign investments. Those, in my opinion, are too volatile. Unless you have a HUGE amount of money to invest for those 6 months, you aren't going to get a large enough yield for the risk involved. If you have that huge amount of money, you could use it to defray the costs of that $41000 year education. Many liberal arts colleges and private universities have $40000 per year price tags. There are other ways to finance that education, if that is truly what this student is going to do and you support that....than to take financial risks with your money. BUT disclaimer...I'm not a financial investment expert and I tend to be very conservative with my investments, especially those which are earmarked for expenses (such as college).
|By Philvid2 (Philvid2) on Saturday, October 02, 2004 - 08:12 pm: Edit|
No offence to the people here, but I would never get financial advice about something like this over the internet from strangers. You should talk to a financial advisor from your area.
On a side note, you may have a couple of different tax impact from pulling the money out of a 529, not directly spending it on educational cost, and then investing it overseas. The extra few percentage points may not be worth it. You need to check about that with a professional!
Report an offensive message on this page E-mail this page to a friend
|Posting is currently disabled in this topic. Contact your discussion moderator for more information.|
|Administrator's Control Panel -- Board Moderators Only|