re: Looking for how you all save for your kids (529 vs brokerage vs custodial)

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Unless it's just to get a match, a taxable brokerage offers better tax treatment than these Trump accounts. Why pay income tax rates when you can pay preferable LTCG rates with no restrictions on withdrawals?

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Can you expound on this a little more?

Are you saying its more tax advantaged to contribute to your own account and gift it to your kids rather than fund a Trump account?

Or is there a separate avenue to open an account for a kid?

FYI for anyone in Louisiana looking at 529s: don't overlook the state's START plan.

It's Louisiana's 529, and it has a couple of benefits that you may not get by using an out-of-state plan.

Louisiana allows a state income-tax deduction on contributions — up to $2,400 per beneficiary for single filers or $4,800 for married filing jointly.

The bigger perk is the state's "Earnings Enhancement." Louisiana actually adds money to the account based on your contributions and income. Even if your AGI is $100K+, the enhancement is 2%. At lower incomes it ranges from 4% all the way up to 14%.

So at $100K+ AGI, a $4,800 contribution gets a $96 state enhancement plus about $144 of Louisiana tax savings at the current 3% tax rate.

It also has Vanguard investment options, qualified withdrawals are tax-free, and the kid does not have to attend college in Louisiana.

Just something worth comparing before automatically going with one of the more commonly advertised 529 plans.

Lots of great info so far.

The recognition here is to point out that you along with the responses are what model parents you all are, and what the standard should be in our society.....taking care of the family unit and maintaining a legacy. I worked with many selfish parents in my career. They literally have a goal to not leave a dime to their children.

My main focus has been their education. I have over $500K and growing in both college 529 and K12 accounts spread among three kids. With the rising cost of education, I want to be sure that they will never have to worry about student loans, educational opportunities, or shy away from grad/law/med school because of the cost. I don't want my children to be burdened with some massive student loan while also having a marriage and kids to deal with. Also, the concept of scholarships are great, but to me that's like someone relying on social security for retirement. That's part of the reason why obsessive sports dads exist. They need someone else to fund their kid's college education.

Also, I hope to leave a education legacy to my grandkids. I would have really appreciated if my father would have said hey son I have K-12 or college taken care of for your kids. While I did not expect that, it was some major anxiety for me when the kids were babies to figure out how to make that work. Lucky for us it did, but more than likely it would not have.

I also have a brokerage account for them in which they will get when they turn 18. I expect there to be $30-$40K in there by the time they are 18. It will do either one or two things....they will see the benefits of compounding and letting investments take their course, or they will blow it and will later on regret doing that, and hopefully teaches them a hard lesson.

At my next meeting with my advisors, I will ask about next steps for them. Lots of good input in this thread.

All in all I think a 529 is the starting point in helping your children. I like the protections it has in place, and that its used for a specific purpose, and a great one at that.

The contrast between this thread and the one currently on the OT is comical. Over there you have groups of parents that are sweating fee bills due this month.

Over here the goal is to fund college by high school and then get a head-start on house a payments and IRA.

If you thought the boomer envy/hate has gotten out of control. Wait for the fireworks when the great schism of gen-Z have/have nots becomes visible.