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Finally funded and question (help please)

November 17th, 2008 at 02:57 pm

My emergency fund is fully funded!!! Yea! We are only one month behind, so not so bad. Now we can move on to our Roths. Plan to open one this week. Anyone have any recomendations? Also want to do college funds. Anyone want to give advice on ESA's or 529's?

Thanks in advance.

7 Responses to “Finally funded and question (help please)”

  1. gamecock43 Says:

    CONGRATS!! And I got no advice for ya.

  2. merch Says:

    ESA %u2013 you can contribute up to $2,000 a year. It can be used for private school as well as college. If you make over $220k, you can't contribute. From 190 to 220, it gets phased out. You can put the money into whatever investments.

    529 %u2013 Only good for colleges, universities, and post secondary education. You can contribute up to $200k per beneficiary. These are state run plans and you have to invest in what the plan offers.

    And congrats!!!!

  3. monkeymama Says:

    Congrats!!!!!

  4. Koppur Says:

    Yay! Congrats!

  5. Ima saver Says:

    Good for you!

  6. jIM_Ohio Says:

    My advice is you are better off with a paid in full mortgage before funding 529's or ESA's.

    This is because their is no federal tax deduction for 529s or ESAs (if the state deduction on 529s helps you significantly, then my general advice is wrong in your case).

    There are federal deductions worth anywhere from $4k to $1650 for paying college education from taxable accounts.

    My logic is that a $4k deduction taken in 4 different years (16k total) and a paid for house is worth more than any state deduction you can get over contributing for 2-18 years.

  7. Petunia Says:

    Congratulations! Hope to join you in the "fully funded emergency fund" club one of these days.

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