I want to open a savings account for my niece so she can go to college. Which direction should I go with this?
I've heard of 529 plans and Gerber and other things like that. I would like to put money in to something that has a decent return. Where should I go with her college finances?
I should mention she's only five years old, so I'd be looking for a term plan.
- ?Lv 77 years agoFavorite Answer
Forget the gimmicks. Open a brokerage account with a company such as Fidelity or Charles Schwab. Invest in mutual funds. Name niece as beneficiary.
This way if at age 18 she decides NOT to attend college you still control the money
Any thing in her name and she gets the money at age 18 even if she runs away to marry less then suitable person or has other issues. You need to keep control of the money and decide IF and WHEN she is entitled to it.
- wizjpLv 77 years ago
I'd take a minute and look at a local college webpage; they should list some ways to start this and maybe even provide contact information for a financial aid officer who would give you some advice.