I have a 529 I started for my 2 year old when she was born that I put about $150 a month in for now. We had baby number two this year - should I add her as a beneficiary to the existing 529 (I think I heard you can do that) or start a separate one?

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Posted by tiger61

Summit, MS

Member since Oct 2006

142 posts

Posted on 10/26/17 at 9:18 pm to Furbs311

I was recently in the exact same situation as you and had the same question. I did some research and decided to open up a separate account for each child. Here is a good read on the subject with excellent points as why to open separate accounts.

LINK

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Posted by Furbs311

South Carolina

Member since Oct 2005

516 posts

Posted on 10/26/17 at 9:22 pm to tiger61

Thanks for the link. I'm still convinced both my kids will have so much scholarship money they won't know what to do with it all

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Posted by meeple

Carcassonne

Member since May 2011

9368 posts

Posted on 10/27/17 at 12:13 am to Furbs311

Separate accounts. However I believe you can move money back and forth between them. At least in the Louisiana Start 529. An example would be if child 1 gets a full ride.

This post was edited on 10/27/17 at 12:14 am

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Posted by ChEgrad

Member since Nov 2012

3265 posts

Posted on 10/28/17 at 5:30 pm to meeple

quote:
Separate accounts. However I believe you can move money back and forth between them. At least in the Louisiana Start 529. An example would be if child 1 gets a full ride.

Problem is if you save money for college the college will expect you to use it and they won't get a full ride or maybe not any scholarship. Big push towards more financial need based scholarships to the detriment of merit based in recent years. Sometimes better off not saving - it's a catch 22.

Of course, how would you know what might happen in 18 years.

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Posted by EA6B

Member since Dec 2012

14754 posts

Posted on 10/28/17 at 7:26 pm to ChEgrad

quote:
Problem is if you save money for college the college will expect you to use it and they won't get a full ride or maybe not any scholarship. Big push towards more financial need based scholarships to the detriment of merit based in recent years. Sometimes better off not saving - it's a catch 22.

Also don't save for kid's college at the expense of saving for your retirement, there are many ways to fund their education when they reach that age, but when you hit retirement age there will be no alternative other than what you have done for yourself.

This post was edited on 10/28/17 at 7:27 pm

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