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529 Saving
- Thread starter WhatJobDoIPick
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I don’t have a particular number in mind but I find taxable to typically be a better vehicle as it’s much more flexible. That isn’t to say a 529 doesn’t have value but I think overfunding it is a mistake.
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Funded ours to the max because the state we live in lets you write it off your taxes. So that was like an automatic 4.6% break. Then all the growth is tax free as long as you use it for college. Lots of growth in the last 20 years. Kids can roll the left over into a roth for more tax free growth if they don't use it all. Or use it for grad school or retraining or whatever. Or roll it over to your grand kids later. A financial advisor told us we were doing too much. In the end I'm glad we did it. Many of my partners started working harder when their kids hit college. I cut back
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I have 3 kids. 9th grade, 7th grade, 5th grade
9th grader- $230K in 529, $43K in Coverdell ESA
7th grader- $230K in 529, $40 K in Coverdell
5th grader- $210k in 529, $30K in coverdell
Each kid also has a brokerage account averaging about $50k
I stopped contributing to the tax advantaged college accounts last year and will let them ride. I admittedly have probably overcontributed to those accounts, and may be funding Roth rollovers in the future for my kids and/or my future grandkids’ educations, but I’m ok with that. College costs are increasing so quickly, I wanted to make sure my kids wouldn’t have to stress about the cost or mortgage their futures to go to college. Chances are some of them will get some money thrown their way or go to a public school, but if they go private they should be in good shape too.
My parents were able to take financial stress out of the equation for me (albeit before costs spiraled out of control) and I wanted to do the same for mine.
9th grader- $230K in 529, $43K in Coverdell ESA
7th grader- $230K in 529, $40 K in Coverdell
5th grader- $210k in 529, $30K in coverdell
Each kid also has a brokerage account averaging about $50k
I stopped contributing to the tax advantaged college accounts last year and will let them ride. I admittedly have probably overcontributed to those accounts, and may be funding Roth rollovers in the future for my kids and/or my future grandkids’ educations, but I’m ok with that. College costs are increasing so quickly, I wanted to make sure my kids wouldn’t have to stress about the cost or mortgage their futures to go to college. Chances are some of them will get some money thrown their way or go to a public school, but if they go private they should be in good shape too.
My parents were able to take financial stress out of the equation for me (albeit before costs spiraled out of control) and I wanted to do the same for mine.
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I don't have kids, so I simply burn that stack of singles and fives that I stuff in my mattress that I mentioned in the other thread.
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I have a 10 year old and a 6 year old, they both have close to 40k in their 529s right now. I plan to continue about 11-12k per year for each of them to meet the state tax deduction threshold. We don't plan on funding more than that. I do wish we had started earlier but we had our kids in med school and I was making roth IRAs happen for us instead any extra income I could, so all of those contributions are in the last 3-4 years.
Good news is that with those contributions and time they should still be able to attend a 30-40k (currently) a year school, if that isn't enough then the rest is on them. We also don't plan on telling them about these accounts until they're about to apply to college so that they have continued motivation to work hard and get scholarships.
Good news is that with those contributions and time they should still be able to attend a 30-40k (currently) a year school, if that isn't enough then the rest is on them. We also don't plan on telling them about these accounts until they're about to apply to college so that they have continued motivation to work hard and get scholarships.
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16,14,12 Total about 200K. Not putting in anymore and letting this ride.
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I don't know the totals off hand. The money automatically moves every month and is invested.
I still have a six figure educational debt at a low enough rate I usually forget about it.
I still have a six figure educational debt at a low enough rate I usually forget about it.
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I did 500 per month per kid from birth.
We went public schools K-12 so I’m fine covering the balance for 4 years. Oldest’s 529 will have enough for around 70% of her college costs. Youngest’s hopeful a bit better.
We went public schools K-12 so I’m fine covering the balance for 4 years. Oldest’s 529 will have enough for around 70% of her college costs. Youngest’s hopeful a bit better.
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My target for each of my kids, was to have enough to send them to an in state university for 4 years, by age 18. With my oldest at age now, we were able to hit that goal.
If they go to graduate school, they will borrow. If they get AP credits, dual enrollment credits or scholarships, they can put that towards a more expensive undergrad, or use it such that there’s money left over for graduate school so they can reduce the amount borrowed.
Both of my kids will start college as juniors with 2 years credit already (AP plus dual enrollment) due to being smart and motivated, which helps.
You want your kids to have some skin in the game. Because unless you’re a multimillionaire, smart kids with expensive educational tastes could set you back 1/2 million dollars or more, each, for a private undergrad plus medical (or other graduate) school.
It helps to work in mays to motivate them to keep costs and borrowing to minimum.
If they go to graduate school, they will borrow. If they get AP credits, dual enrollment credits or scholarships, they can put that towards a more expensive undergrad, or use it such that there’s money left over for graduate school so they can reduce the amount borrowed.
Both of my kids will start college as juniors with 2 years credit already (AP plus dual enrollment) due to being smart and motivated, which helps.
You want your kids to have some skin in the game. Because unless you’re a multimillionaire, smart kids with expensive educational tastes could set you back 1/2 million dollars or more, each, for a private undergrad plus medical (or other graduate) school.
It helps to work in mays to motivate them to keep costs and borrowing to minimum.
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I’m putting $3500/year per each of my children (i have 2).
My state gives up to a 7k tax incentive so I’m just minimizing my state income tax.
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$6000/year (per kid)
2 kids
Currently have $70,000 per kid (combination of principal and gains).
Started ~6 to 7 years ago.
No state tax deduction for where I'm at but the overall favorable treatment when used for education makes it useful.
2 kids
Currently have $70,000 per kid (combination of principal and gains).
Started ~6 to 7 years ago.
No state tax deduction for where I'm at but the overall favorable treatment when used for education makes it useful.
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I do the utah plan.. i try to be aggressive as possible.. market has been good to me.. The offerings are broad but not overwhelming with options. .
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I have one kid around 5 and account has about 60k
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Target fund. Nothing fancy
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Vanguard US equities index.
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I have Georgia's Path2College 529 plan, which is the only one Georgia recognizes for tax deduction purposes. I plan to convert the limit to Roth IRA for my daughter after she graduates high school. Will use remainder for college or pay out of pocket.
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