Noodad - Latest Comments in noodad » An Easy Promise to Keep

Re: noodad » An Easy Promise to Keep

paul_can — Thu, 11 May 2006 03:38:43 -0000

I\'ve been a member of upromise for over a year and I like it. I get 5% back from my credit card at the grocery store and upromise $. I like it a lot, and I do try to pay off that credit card every month. Another idea is to use the now-ubiquitous debit cards withe Visa/MC symbol for upromise purchases to avoid the credit card trap!

Re: noodad » An Easy Promise to Keep

cgillis — Sun, 23 Apr 2006 02:16:26 -0000

You have some valid points. Even if you dont use credit cards you can still link other peoples credit cards to your UPromise account. I may not use a credit card much, but both my brothers may so I might as well get credit from their purchases if they dont have kids to save for. I do shop online so credit card purchases are unavoidable. When I buy mothers day flowers Ill do it online and get 10% back through Hallmark / UPromise. I agree with your point, careless use of a credit card can minimize the benefit. Credit card companies will screw you if you give them half a chance.

As for 529s, they exist as another investment option. Of course there are as many options as there are risk tolerances. I believe many parents who are not sophisticated investors can benefit by the ease of setting up and maintaining a 529 plan. The best form of the 529 is disappearing the prepaid tuition plan. In some states you can actually lock in the full degree costs at todays prices. Sadly after a couple of years they stopped new enrollments in my state. Two years ago my graduate program cost me $45,000.00. Now it costs $60,000.00. I believe any program that encourages families to save for college should be considered. Each family should pick the plan that fits their comfort level and savings strategy. My fear is that some families dont start any form of investment for college until it is too late.

Anyone else who needs more information about the options can learn more by clicking here.

[URL=http://www.irs.gov/pub/irs-...]IRS Publication 970[/URL]

Re: noodad » An Easy Promise to Keep

alias guy — Fri, 21 Apr 2006 06:05:19 -0000

The problem I have with Upromise is that this plan will only work if, when using credit cards(which is how most people will use it), you pay off your card in full every month and never have a late payment. Otherwise you negate any savings. Given the way that CC companies are looking to stick it to their customers these days that is very likely to happen. And if you are carrying a balance you are just fooling yourself.

Also, I\'m not a fan of 529 plans. Most are too restrictive and make it hard to move your money around should you be stuck with a dog of a fund. Better to do an ESA (Education Savings Account). It has all the benefits of the 529 and you have all the control. You can put up to $2000/year into it. Btw, $2000/year for 18 years will get you $100k without having to risk dealing with CC companies.