Posted on by Miyako

Getting it done! 529s

Hi EnLifers!! Sooo, I was thinking about what I wanted to write today and basically what’s on my mind is all of the things I haven’t done yet this year. So, my plan is to write it here as a reminder and for accountability so that I’ll make it more of priority. Two goals that I haven’t executed yet are to set up 529s for the boys and to switch our emergency savings to either a high yield savings, CD, or mix of both.  So what’s holding me up? Life in general, but also some contemplation that I’ll share here in case you’re pondering the same thing. The main thing I’ve been pondering re: the boy’s 529 is if I should take the savings that are in their accounts and start the 529 or start from scratch. A few things were considered before making a decision – 1. We are not in a position or ready to contribute on a regular basis. Right now, it’d be more of when we receive windfalls etc until we have additional, steady income. 2. I want them to have some $ in savings when they reach maybe 16 or 18 or something to use it for whatever they want-car, college spending $, etc. It won’t be a whole lot, but basically be comprised of their piggy bank $ and cash gifts over the years. 3. Which 529 is the best? Right now, we live in Georgia, but apparently, you don’t have to open a 529 where you live which opens so many more opportunities. There are TONS of 529s and I found it a bit overwhelming at 1st, but there are some sites I trust-mainly the government sites. The best place to start a review of 529 plans if you’re interested is the US Securities and Exchange Commission (SEC). They have an intro to 529 plans that can be found here and they have also set up the College Savings Plan Network, where you can find out more about 529s and even compare plans. I also searched the internet for free independent reviews of 529 plans.  Ultimately, I decided to go with the Georgia plan as I found it was rated fairly well and they also give tax benefits to GA residents. In talking things over with my husband, we also decided to take any money that we’d saved directly in the kid’s savings accounts and put in the 529 plan and leave gifts in the savings accounts which I thought was a good compromise. Now, I just have to execute. I’ll give myself until the end of the month to execute and check back in with you all to let you know what happened! Do you have any experiences and/or opinions to share re: 529s? If so, please share below in the comments!