re: Little one on the way

quote:

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The cost of raising kids in LA.
God bless y’all.

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Indeed, those numbers are absurd. We are talking a sum nearly the individual US median income.

Frankly, if you can afford it then more power to you. But damn, to each his own.

Living in TX, we don’t get the state income tax deduction benefit. I’m currently figuring out which provider to go with for the 529. Texas 529 looks higher in fees than is necessary so not seeing a benefit of using that one. Schwab has 0.25% fees for a index based approach but I don’t like the cash drag they require in even their most aggressive portfolio. 5% cash drag might as well add to the 0.25% fee…this is the same BS Schwab pulls with its intelligent advisor portfolios (which also have no way to avoid the cash drag). Vanguard looks appealing. Huge number of portfolio options that appear to be 100% invested in underlying funds. Total stock market portfolio has a 0.12% fee which is the lowest I’ve seen thus far.

Any watchouts I haven’t considered here? I want to aggressively invest in low cost index funds for whatever 529 I choose.

Simple advice that has helped me raise my daughter to be a pretty great kid.

529: Just do it. If he/she gets a scholly you can use it for living expenses. This has our plan. I plan to use it to buy a piece of property, lease it to her, then give it to her. I do not plan to drain this account. My plan is to contribute to it until I die and when she has kids, hopefully she will do the same. Over the course of time, if everyone buys in, college cost will never be an issue.

Activities: I try to get her in at least one sport, on social activity, one community activity, and one academic activity. We did this for years until she started to figure out herself. Now she picks and inevitably leans into touching things that check these boxes. It makes for a well rounded, and thoughtful kid.

A personal savings account: this doesn’t grow for shite, but I put away a couple of bucks for her every month. This will be her “oh shite” money, or I’m a dumb arse and will waste this money, her choice.

Something that grows: find a Roth or some index fund that you can drop some cash in every month. This is her life goals money. It could be for a dream house or a once in a lifetime vacation.

Academics are important: we studied religiously from 5-10. I taught her how to study. Then I let go. I let her frick up. I let her make 12yr old academic mistakes so that she can learn from them and not make 18-22yr old mistakes. Failure is good for character.

Spend time with your kid. Talk to your kid. Don’t be a friend but a parent. Let your child know that he/she is safe with you, no matter what. I may not be happy with my kid, but she knows I will always be there and I love her.

Teach the little one about money and all it does or does to one as time goes by

Damn baw you got some, congrats. About a year she might let you hit it again