fldasha

We are contemplating on getting an educational plan for our daughter. We have asked for information on some pre-need companies. They offer attractive packages. Would you also consider getting an educational plan for your kids?

Tom

Hmm. Can someone explain educational plan?

I'm not sure if this is a financial plan for paying for higher education or ???

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fldasha

I am referring to an educational plan offered by pre-need companies. It is just like insurance. You'll be paying certain amount for at least 5 years. Then when your child reaches 16, he can use the educational plan. This is a good investment because you can double the money you have paid for five years. The benefit and amount your child would get is doubled.

Tom

I see. If it's guaranteed money it sounds like a good part of an investment plan for education. Maybe you could make more with traditional investing (mutuals, stocks, etc.) but considering that there is risk with that type of investment some guaranteed funds sounds like a good idea as well.

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mamab

They have something similar to that in Alabama, but what happens to that money if your child decides she doesn't want to go on to college? Do you get that money back, with the interest it's accumulated over the years, or do you get JUST what you've put into it?

I think, if it were me, I'd put that same amount into a more "conventional" means of investing. That way, if the need arose, you'd be able to access the money before she turns 16. Also, you have to check to see if the program has actually paid anything out to the people that are "investing" in it. I'd hate for you to be taken when you're trying to make a way for your child's future.

parent1596

I have never heard of that....sounds interesting.......I have a 529 plan set up but that is about it

Kaytee

Texas used to have a plan like that, so I was told, I didn't live here then, but I would just look into it and see what seems like the best deal. Especially about if your child doesn't go to college. I come from a huge military background and it wouldn't suprise me all that much if my daughter went in the military too, therefore no college kinda thing.

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ASparrowsFreedom

hhmm..I will have to look into this as I have 3 little ones and will need to plan for them. Any particular companies you have been looking at?