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re: What is a "realistic" goal for a child's 529 contribution?
Posted on 9/12/16 at 1:51 pm to HailToTheChiz
Posted on 9/12/16 at 1:51 pm to HailToTheChiz
Nevermind
This post was edited on 9/12/16 at 1:53 pm
Posted on 9/12/16 at 2:36 pm to makersmark1
quote:
After you fully fund every possible retirement account(401K, 457, Roth,SEP, etc), then if you have the funds left 100 or 200 a month seems reasonable
This is my approach to the topic. Although I don't fully max out my 401K, I have been putting 8% in for about 12 years now. I've also opened ROTH accounts for my wife and I and I've been maxing both of those accounts out annual which will double as an extreme emergency account if needed.
I invest $100 per month for each of my two kids. I'm projecting to have about $25-30K in there for both of them by the time they start college. I'll do whatever I can to help, but I believe it's better for them in the long run if they aren't burden with having to foot the bill financially to take care of their parents whenever we reach our golden years. So, I'm "trying" to be fiscally responsible now.
With all the scholarships, work study programs, grants, etc. that are available I'm sure whenever that time comes we will find a way to bridge the gap. I'm going to do my very best to help them get through college without any student loan debt.
This post was edited on 9/12/16 at 2:55 pm
Posted on 9/12/16 at 3:01 pm to LSUFanHouston
My daughter is a senior at LSU and the total annual cost has been averaging around $13,000.
Posted on 9/12/16 at 6:49 pm to LSUScores
quote:
My daughter is a senior at LSU and the total annual cost has been averaging around $13,000.
Tuition, books, fees, rent, utilities, instance, etc seems like it would be more than that
Posted on 9/12/16 at 8:16 pm to LSUScores
quote:
My daughter is a senior at LSU and the total annual cost has been averaging around $13,000.
That's instate I'm assuming?
Posted on 9/13/16 at 1:38 am to HailToTheChiz
Actually, if you can average the 8% growth of the s&P500 over that period, it works out to be 35k in 2016 dollars.
Posted on 9/13/16 at 8:15 am to HailToTheChiz
quote:
i need to look, but say you fund the 529 for 18 years and your kid decides not to go to college
what happens with all the money? i assume it can be withdrawn at a taxed penalty?
You will be taxed at your tax rate plus 10% penalty.
But say your child goes to college and has scholarships. You can pull out an amount equal to those scholarships without penalty for your own personal use.
This post was edited on 9/13/16 at 8:23 am
Posted on 9/13/16 at 8:32 am to bwallcubfan
quote:
But say your child goes to college and has scholarships. You can pull out an amount equal to those scholarships without penalty for your own personal use.
Beautiful. Did not know that.
This post was edited on 9/13/16 at 8:32 am
Posted on 9/13/16 at 8:51 am to LSUFanHouston
quote:
Every month, I put $100 into an account for each of our kids (we have two), the accounts are a low-cost index fund. At this point, the accounts are in my wife and I's names, not our kids. The small amount of investment income taxes we pay on this is more than offset by the control of me being flexible with how I give them the money later on.
I've been putting $50/month per kid into a 529 account, but at times i feel like i need to do what you're doing instead. The 529 plan does save us a few bucks on state income taxes, but like you said, the investment fees/taxes might be worth it for the flexibility.
Kids are pretty young still, so i could probably switch the dollars from a 529 to a direct vanguard fund. Would the penalty be about 10% plus state tax?
This post was edited on 9/13/16 at 8:52 am
Posted on 9/13/16 at 1:59 pm to Palmetto08
quote:
Our only child just turned three and we currently have $28,000 in her 529 plan (100% Age Based Aggressive 0-8 yrs)
We put $500/month i
so in 3 years you've put in 18 and now have 28? 60% return not too shabby for 3 years.
Posted on 9/13/16 at 2:54 pm to TopWaterTiger
he said he also put in some bonus money
Posted on 9/13/16 at 4:48 pm to HailToTheChiz
Probably a stupid question, but doesnt a 529 seem like a very antiquated way to pay for college? Sure, when college tuition wasn't 5 figures at a minimum the average family with 2.5 kids could use them to sock some money away to pay for retirement.
What's the average cost of higher education these days $20k a year (avg private vs. public)? So for 4 years you are looking at $80K (not factoring in inflation). Just dont see many families (including relatives) being able to save $4k per kid per year. They might work if your kid goes to an in-state public university, but for a private college, just dont see how one can save enough to make a dent (but I guess a dent is better than nothing).
What's the average cost of higher education these days $20k a year (avg private vs. public)? So for 4 years you are looking at $80K (not factoring in inflation). Just dont see many families (including relatives) being able to save $4k per kid per year. They might work if your kid goes to an in-state public university, but for a private college, just dont see how one can save enough to make a dent (but I guess a dent is better than nothing).
Posted on 9/13/16 at 5:46 pm to BlackenedOut
We put 50 a month and one lump of anywhere from 1000 to 2000 a year.
It is what it is. Hopefully my kids take after their mother and get scholarships and are smart like her.
For the extra we will figure it out down the road.
It is what it is. Hopefully my kids take after their mother and get scholarships and are smart like her.
For the extra we will figure it out down the road.
Posted on 9/13/16 at 7:06 pm to TopWaterTiger
quote:
you've put in 18 and now have 28? 60% return not too shabby for 3 years.
I wish return was that good. I started putting $500/month in April but have deposited some large personal and family/friend contributions.
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