UGMA a Good Idea?
Dave helps Scott figure out the best way to save for his kids' college education in the next five years.
ANSWER: The stock market has gone up 97% of every five-year period and only 63% of every three-year period have gone up. If you only have three years to save, you should not invest in mutual funds. You should put the money in a money market account where the principle is protected, even though the rate of return is lousy.
Compound interest will not be your friend in this situation; big principle payments are the best thing you can do now.