I have a baby on the way and own my own business.
Because I have my own business my income is volatile every month, and don't want to count on contributing monthly for 20 years for my child college because of the possibility that it could hinder our ability to save if times get ruff. ( more or less I try to keep monthly payments to a very minimum )
Wanted your opinion on opening and dumping $20,000 in a good growth mutual fund.
I figured with compound interest over 20 years that could equal around 100k if I am lucky.
I would also use whatever money through out the years my child got from family gifts and drop it in the account.
20 years at 5% = 53,000 20 years at 10% = 134,000
Also - this money is for "college", but other items as well - like a car, or down payment to a house if there is extra money left over.
This is basically my attempt to get ahead of the curve so when I am 50 years old I wont be in a situation of taking on 50k dollars worth of debt help my child get through college.
Is the a good option? flawed option? Better options out there?