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Kids, College, and 529s

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  • Avatar Peds 
    Participant
    Status: Physician
    Posts: 3604
    Joined: 01/08/2016
    She is intelligent and gets good grades but is not a go-getter and I am neither a Tiger Dad or Lori Laughlin, so USC is not on the cards at this time.

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    dont sell her short!!! you dont want her ending up in that school across the way……

    #198065 Reply
    Avatar fasteddie911 
    Participant
    Status: Physician
    Posts: 282
    Joined: 05/31/2016

    College is a ways off for us, but we plan to pay for all costs, including grad school.  That’s what our parents did for us and we will pay it forward, though we’ll give much better guidance than what we received about colleges and careers.  When we went to school, the mentality around us was get into the “best” school possible w/o any thought towards career goals.  Now I realize there are so many options for school and work that I never knew existed when I was applying.  I’ve come to question the role of college, its curriculum, etc. over recent years, but that’s another discussion.  Between my spouse and I, with undergrad, transfers and grad schools, we’ve seen the gamut of different types of colleges; private, public, small, large, elite, low-tier.  We’d only consider a private school if it’s elite and fits our child.  Otherwise we’re fine with State school, out-of-state State school, transferring to elite school later, community college, etc.  I would not be against the trades, associates in healthcare (ex. sonographer), etc.

    Having said that, our State doesn’t offer any tax benefits for 529s and I’m be hesitant to “lock-in” money in a 529 considering my feelings about college and uncertainty regarding my child going the traditional route, scholarships, etc.  I also subscribe to the idea of making hay, and while it’s a tiny benefit, having that college money not locked up in a 529 makes me a touch more comfortable in case things go sour.  I’m considering just cash-flowing when the time comes. It may cost a little more, but I’m ok with that for the flexibility.  I’m hoping by the time college rolls around I’ll be FI, in which case I can work a few extra years if need be.  But of course, I may change my mind tomorrow.

    #198127 Reply
    Liked by Kamban, portlandia
    Avatar MnSaver 
    Participant
    Status: Other Professional
    Posts: 57
    Joined: 01/04/2018
    We have twins that are sophomores in high school and our target was, and is, funding in-state tuition/room/board/books. 

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    I have a set of twins one year behind yours and then a 6th grader…

    Currently, 529’s are over-funded 

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    Can you tell me what you have saved so far? How are you calculating? What state do you live in and what is typical cost yearly?

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    We have saved $142,000 each and our benchmark is University of Minnesota Twin Cities. The total cost of attendance is $28,700 and its the most expensive of the state schools in Minnesota. Fortunately, we have reciprocity agreements with ND, SD, WI, and Manitoba so there are lots of options. We have assumed a 7% total cost inflation rate, and expect that inflation will catch up to our 529 savings. Any shortfall at that time eill come out of cash-flow or taxable.

     

     

     

    are lots of options

    #198301 Reply
    Liked by SLC OB
    Avatar SLC OB 
    Participant
    Status: Physician
    Posts: 425
    Joined: 06/23/2018
    Disability Insurance
    The total cost of attendance is $28,700 and its the most expensive of the state schools in Minnesota.

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    Gotcha, nice work!

    I’m in California, little more expensive, with average UC costing about $35K/Yr now…

    We’ve got an extra year to save but one more kid than you (I think).

    We’ve done a mix of 529 (only have $68K/each) and an investment property to fund college. Once paid off (hoping by end of this year, but that may be too lofty of a goal) then it will bring in $33K/year in income or we could sell and use it to fund college (after taxes, real estate fees, etc. it should be worth $600K or so… plenty).

    #198315 Reply
    Avatar FIREshrink 
    Participant
    Status: Physician
    Posts: 887
    Joined: 01/11/2017

    We contributed $70k per child by age seven and qué será, será. We have enough to pay for private undergrad for each, and from here on we hope growth offsets inflation, plus/minus scholarships, less expensive undergrad options, grad school, and future grandchildren. This was a cultural priority for us.

    #198316 Reply

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