Savings for kids

[Loganwayne]

Getting close to finishing up our house renovation, so its time to start putting some money aside for the kiddo.
I am truly clueless to this kinds of stuff. My parents didn't/ dont have any savings/ investments and never really thought me what I should do.

I've heard a 529 account alot. But wondering if putting some in that and some into either an IRA or a CD.

I've got some cash to jump start either or both then probably pay in monthly until my wife goes back to work.

 

[RatLabGuy]

Check and see if NC has 529 incentive contributions. In MD for instance if you put in something like $500 annually they give you a tax credit (subject to income limits).
As a general rule something market based like 529, IRA, etc is better return than a CD, especially given the many-year nature. CDs are typically only a year or two.
FYI - you don't HAVE to do an NC-based 529. Most states will let you do their funds, and there can be a big difference in the average performance of them (last I checked Alaska had the best average performance funds). Where it matters is if there's a state tax incentive (again, don't know if NC does).

A bolus up front is nice but often the best realistic growth is getting into the habit of a regular monthly contribution, you just ignore that money coming in and it stacks up for years. then when they've hit the age or its no longer needed, you can stop and its liek you just got free money income you were never counting on....

 

[R Q]

FWIW you don't have to put their name on it. Just open an account that you earmark for them. I just started an after tax IRA for my son because if he turned out not deserving of the money then I wanted control over it. He's 28 now and not worthless. lol But when it was time for college tuition, I started withdrawing as needed and then bought him tools with the remainder at the end. With some of those kids saving plans, they get control of the money at a certain age. Not good for an 18 year old with no life experience IMO @rcalexander105 can probably advise you best.

 

[CasterTroy]

I second @R Q

Reach out to @rcalexander105 and get on the right track

We started 529's for the kids at birth and had enough to put them all thru school, the youngest thru grad school, and STILL had leftover. Keep in mind, by the time your kids are college age, trades will be King because A.I. will have taken all the jobs that colleges were good for

Also...think of yourself. Unless you've got several $$$ already invested and ready to pay YOU in your 60's, you still need to be aggressively contributing to your own retirement

Call Rod!