XP: When to see a financial advisor

[SJ]

First of all, RNV gave you great steps and I agree with her.

Roth IRA's are great tools and in most situations I would recommend opening and maxing them as long as you qualify.

I do like 529 accounts for a few reasons. In many states you can get a tax deduction for your contributions. The funds grow tax-deferred meaning you don't have to pay tax on the dividends, capital gains, or interest as the investments grow.

ESA accounts can be nice, but they have income limits and lower contribution limits.

I don't generally recommend custodial accounts because there are no tax breaks or incentives. In addition, there aren't restrictions on the money so when the child reaches 18 or 21 the funds are theirs free and clear to spend as they want. Not what most parents have in mind when saving for education.

I recommend doing some reading and research at www.savingforcollege.com

All that being said, make sure your own financial house is in order before worrying about 529 savings. Pay off high-interest debt, make sure your retirement savings are in good shape and that you are maximizing any available employer matching, save an emergency fund, etc.