Baby Questions Round 1 (Continued): Financial

Continuation of the questionnaire, this is the last one for Round 1:

1. Which is better, the flexible spending account for day care vs. taking the federal child care tax credit? Since account contributions reduce dollar for dollar the federal child care tax credit, which do you take or a combination of both?
Sounds like there are phase-outs for the federal child care tax credit, so you would probably use the FSA.

2. Did you add or increase coverage on disability or life insurance? For both spouses?
Seemed like most increased life insurance but didn't touch disability. Also if you're going to do it, do it soon since it's cheaper when you're younger and healthier.

3. Did you draw up a will or a living trust?
Most said no, but are planning to soon. [Anyone know of a good lawyer that focuses on wills?]

4. Have you started a college fund? Which is best: 529 Plans, Coverdell, Roth/Traditional IRAs, UGMA/UTMA?
Some are looking into this still, some are already doing it. Of the ones doing it, they're in the 529 plans: GET Program ("I think currently if you pay $7K, that guarantees a year's worth of tuition in the future."), the one in the state of Nevada (it's run by Vanguard which has low fees) and one run by Fidelity (based on financial advisor). The laws related to this may be changing, so it may be good to look into this soon. Anyway, looks like you don't need to enroll in the 529 for your state, you can enroll in any state's 529 plan.