american living in Italy who could really use some guidance

**disneysteve** · 02-28-2008, 04:31 AM

For money that you won't be needing for 10 years, I would suggest being a little more aggressive than a CD. Are you able to participate in a 529 plan (not sure if you need to be a US resident or just a citizen)? If so, I'd consider putting the money in a 529 (Utah has the top-rated plan for out-of-state investors) and choosing an age-adjusted fund that gets gradually more conservative as the child nears college age. That way, you will most likely get a better return and avoid taxes.

**gladtobeamommy** · 02-28-2008, 07:17 AM

I have a question about the 529 Plans (sorry a little ignorant when it comes to them) would having a 529 hurt the chances of getting any kind of aid. The reason I am asking is even if I do decide to fund a 529 for ds 9 and dd 4 I don't know that there will be enough to cover the cost of college. Is it better to fund our retirement through a roth and I had heard that you can w/drawal penalty free for college.

**sweeps** · 02-28-2008, 07:25 AM

529's have favorable treatment when it comes to financial aid eligibility. It counts as your asset (not your child's) which is a good thing.

When you get a tax-free distribution from a 529 it does not increase the income that would be reported for the following year's financial aid calculations. A distribution from a Roth IRA is reported.

More info here and here (see last paragraph)

**gladtobeamommy** · 02-28-2008, 08:01 AM

Thanks for clearing this up for me

**disneysteve** · 02-28-2008, 08:29 AM

I also don't think it is wise to raid your retirement plan to pay for college.

**anonymous_saver** · 02-28-2008, 09:32 AM

Originally posted by tinalessia View Post

I'm an American woman living in Italy and married to an Italian. 18 months ago we took about 18,000 euro ( at this stage I can't remember the exact amount) and put it in a 5.75% CD in a credit union in FL. Came to about 24,500 $. It's maturing at this time and we're a little confused as to what to do since the dollar is so weak. If we take it out and convert it back to Euro, I'm pretty sure we're going to lose. Is it smarter to just let it renew and keep waiting and hoping ? Or should we take it out and reinvest over here in Europe? Most likely the money will be used to help our daughter go to college in about 10 years time. Whether that will be here or in the states is not yet determined obviously.

I am appreciative and grateful to any or all advice since I'm so new to all of this.

Since this money likely would not be used in about 10 years, I would also put this money into something more agressive than a CD.

Also, do you have debt? If so, how much, what kind, etc.

Are you saving adequately for retirement?

Do you have an emergency fund?

american living in Italy who could really use some guidance