<p>Hi. I'm looking for some financial advice to help me maximize the funds I'll have available for school, which may start Fall 2012. I have about $14,000 from the sale of a home, sitting in a plain savings account, and have about $1,500 in cash. I have no debts. What kinds of accounts should I be parking my money in to have the maximum amount available for tuition? </p>
<p>Thanks for your help.</p>
<p>Savings accounts, CDs, and money market accounts are really the only place to park your investments when you need to begin withdrawing in less than a year. Unfortunately, all of the above are earning close to 0%. The worst thing you can do, though, is try to maximize your next egg by taking on risk with investments in stocks, gold, commodities or energy. You just don’t have the time horizon for the purchase to be an investment. Buying those items would really be just betting your money in the hopes that stocks/gold/commodities/energy goes up. The investment can just as easily go down leaving you with insufficient funds to pay for your expected tuition.</p>
<p>Sounds like good, practical advice. I appreciate it, Chris.</p>
<p>it might be possible to open a 529 college savings plan and get a tax break. Once it goes into the 529 it can only be used for education. The 529 would offer at least one “safe” investment. It depends upon which state you live in. You wouldn’t get a return on the money per se, but you might save a few hundred dollars in taxes. Again, your tax savings is dependent upon which state you live in. If you are not paying any state income tax, or very little, you will not save much, if anything.</p>