300k is too low? Depends on goals I guess…
Too expensive to cover some living expenses by yourself?
Im in the same boat as you as far as background.
www.wsj.com
www.nationalreview.com
Hopefully the private banks will means test those loans and not lend $300000 to future social workers who have no hope of paying it back.
USC Pushed a $115,000 Online Degree. Graduates Got Low Salaries, Huge Debts.
The prestigious private university hired a for-profit firm to recruit students to its social-work master’s program. “You don’t feel like you’re part of an elite school.”
It won’t because The fafsa is a reasonable aid tool and it’s not gameable like the health insurance carnival. They look at net assets not just income.
Very true I am clearly not hitting at their level to be able to paly shell games with funds.
I imagine committing fraud on a federal application will have repercussions not just on your career but also on your kids ability to get in to college.
$300K is a good number to shoot for. Have the kids go to CC's for thier first two years of UG...the final diploma will still read the name of the 4 year school they graduated from.
300k is reasonable
You think those campuses are just going to disappear?!
No but maybe lower prices due to competitoon from metaverse college hahha
Find an academic job that will pay for part of your kids' college - in addition to state universities which usually will give you a break, there's also Penn, Stanford, UChicago, Northwestern, WashU, Vanderbilt, and I'm sure many more that will pay a percentage of the school's tuition at any university.
Read anything about college financing by Mark Kantrowitz; he is the reliable expert on the issue, and often updates his advice to match changes in rules/regulations.
I love my kids enough to encourage them to NOT drop 300K into higher education. Instead, I will create in them a dream to become a mailman at the age of 18, with no college debt and little to no workday anxiety.
A friend of mine who was a corporate business guy had a parent die... stressed him out to no end. Quit his corporate job and became a mailman - been at it now for 10 years. He loves it!
www.bradley-morris.com
Don’t forget that 529s can be passed down, used for grandkids, etc. And worst case scenario, while a 10% penalty is a lot, one could probably run calculations on the cost of overfunding vs underfunding based on Expected probability of use.529 plan at around $150K per kid. Why not more? Because the kid may not need more and the 529 plan is used for educational expenses only.
If you have 2-3 kids the odds are one will need $250K while another spends a lot less like $60K at a state university.
There is no reason to overfund a 529 plan when you can always supplement the cost of the education at a later date. One last thing is that the military academies are free while providing a great education.
Hire a Military Academy Graduate - Military's Top Talent
An Academy Graduate’s knowledge coupled with their skill set make them a ‘pre-approved candidate’ for high-level positions in America’s workforce.
529 plan at around $150K per kid. Why not more? Because the kid may not need more and the 529 plan is used for educational expenses only.
If you have 2-3 kids the odds are one will need $250K while another spends a lot less like $60K at a state university.
There is no reason to overfund a 529 plan when you can always supplement the cost of the education at a later date. One last thing is that the military academies are free while providing a great education.
Hire a Military Academy Graduate - Military's Top Talent
An Academy Graduate’s knowledge coupled with their skill set make them a ‘pre-approved candidate’ for high-level positions in America’s workforce.
It’s actually not as punitive as you think. Basically if you withdraw for non qualified expenses you have to pay the cap gains taxes on your earnings (just like if you had left the money in a regular account) plus an extra 10% penalty on earnings, not contributions.
You do realize you can "gift" money to your kids each year tax free. For 2022 it is $16K per parent. If you want to "gift" more like $100K you need to file a form with IRS which means the money comes out of your lifetime estate tax exemption.
Fair point and interesting. Doesn’t that mean your child has to file a separate tax return and can no longer be claimed as a dependent though?You do realize you can "gift" money to your kids each year tax free. For 2022 it is $16K per parent. If you want to "gift" more like $100K you need to file a form with IRS which means the money comes out of your lifetime estate tax exemption.
The bottom line is that you can invest the money in a tax efficient ETF or mutual fund and gift it to a kid as a well without paying any penalty whatsoever.
Can I gift money to avoid capital gains?
If you don't want to pay 15% or 20% in capital gains taxes, give the appreciated assets to someone who doesn't have to pay as high a rate. The IRS allows taxpayers to gift up to $15,000 per person (a couple filing jointly can gift up to $30,000), per year without needing to file a gift tax return.
Gift Tax: 2025 Exemptions and Limits - NerdWallet
The gift tax limit is the maximum you can give someone without having to file a gift tax return with the IRS. The limit is $19,000 in 2025 ($38,000 if married).www.nerdwallet.com
Up to $32,000 per year can be gifted to the kid. This is not a reportable event on your taxes or theirs. I suggest speaking to your CPA about this before over-funding a 529 plan. There are so many ways to pass on wealth without paying taxes there is no need to overfund a 529 plan. I strongly believe in 529 plans and suggest you do fund one but there is no reason to over-fund. Instead, if you have 2 children or 3 you can fund all 3 with $150K each them move the funds as needed to the kid who has the highest expenses. That's what I did for my kids and it worked out quite well. The issues is more with just 1 child as then you can't move funds around but with just 1 kid what is the issue anyway.
You do realize you can "gift" money to your kids each year tax free. For 2022 it is $16K per parent. If you want to "gift" more like $100K you need to file a form with IRS which means the money comes out of your lifetime estate tax exemption.
The bottom line is that you can invest the money in a tax efficient ETF or mutual fund and gift it to a kid as a well without paying any penalty whatsoever.
Can I gift money to avoid capital gains?
If you don't want to pay 15% or 20% in capital gains taxes, give the appreciated assets to someone who doesn't have to pay as high a rate. The IRS allows taxpayers to gift up to $15,000 per person (a couple filing jointly can gift up to $30,000), per year without needing to file a gift tax return.
Gift Tax: 2025 Exemptions and Limits - NerdWallet
The gift tax limit is the maximum you can give someone without having to file a gift tax return with the IRS. The limit is $19,000 in 2025 ($38,000 if married).
