“Fully Funded College”

[Anonymous]

Anonymous wrote:All of you who have hundreds of thousands of dollars saved for each of 3 kids, what is you HHI?! How much are you putting in 529s each month? I am truly amazed.

We had an exit (stock options) and super funded the accounts. We couldn't have gotten there otherwise based on our typical HHI.

[Anonymous]

Anonymous wrote:

Anonymous wrote:All of you who have hundreds of thousands of dollars saved for each of 3 kids, what is you HHI?! How much are you putting in 529s each month? I am truly amazed.

We had an exit (stock options) and super funded the accounts. We couldn't have gotten there otherwise based on our typical HHI.

How much did you guys put into their accounts? Don’t you have to file extra forms if you put over the gift tax amount for the year ($14-15,000 per person per year)?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:All of you who have hundreds of thousands of dollars saved for each of 3 kids, what is you HHI?! How much are you putting in 529s each month? I am truly amazed.

We had an exit (stock options) and super funded the accounts. We couldn't have gotten there otherwise based on our typical HHI.

How much did you guys put into their accounts? Don’t you have to file extra forms if you put over the gift tax amount for the year ($14-15,000 per person per year)?

So it’s gift tax- you can give whatever you want w-out transfer taxes up to the estate tax limit. Tax prep will handle the forms.

Not sure honestly how much- I think we put in 125k or so per kid and grew in stock rally.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:All of you who have hundreds of thousands of dollars saved for each of 3 kids, what is you HHI?! How much are you putting in 529s each month? I am truly amazed.

We had an exit (stock options) and super funded the accounts. We couldn't have gotten there otherwise based on our typical HHI.

How much did you guys put into their accounts? Don’t you have to file extra forms if you put over the gift tax amount for the year ($14-15,000 per person per year)?

So it’s gift tax- you can give whatever you want w-out transfer taxes up to the estate tax limit. Tax prep will handle the forms.

Not sure honestly how much- I think we put in 125k or so per kid and grew in stock rally.

You file forms, and it does lower your exemption from estate taxes when you die. This is only a problem if you think you're going to leave a more than $11 million estate (under current rules).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I have Irish twins. One just finished his freshman year at UVA and the other is going to William and Mary in the fall. I drilled it in my kids heads that we expected them to go to state schools because that is what we saved for. We did the 529 prepaid for each and have 100k in the invest for both to split. So far I have not had to touch the invest and thankfully didnt in 2017 or thr first half of 2018 as had the money in growth funds. Any extra that is needed will come out of pocket.

I had planned for state schools as well but my son got in to Princeton. The school will provide some support, thankfully, but not enough to offset the difference. We will find a way for him to go there.

If that poster lives in Northern Virginia and her kids are in UVA and WM, I bet her kids could have gotten into Princeton too. One of the biggest benefits of Virginia schools is the enormous network and job opportunities here in NOVA. I've seen it at my work with VT in particular.

Princeton (and others) i now $70K a year. DCs both went in-state. i have been so impressed by the opportunities both DCs have had out of Va state universities. And the good news is that the money we saved is now going to law school ($96,000 a year in after tax dollars)

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I have Irish twins. One just finished his freshman year at UVA and the other is going to William and Mary in the fall. I drilled it in my kids heads that we expected them to go to state schools because that is what we saved for. We did the 529 prepaid for each and have 100k in the invest for both to split. So far I have not had to touch the invest and thankfully didnt in 2017 or thr first half of 2018 as had the money in growth funds. Any extra that is needed will come out of pocket.

I had planned for state schools as well but my son got in to Princeton. The school will provide some support, thankfully, but not enough to offset the difference. We will find a way for him to go there.

If that poster lives in Northern Virginia and her kids are in UVA and WM, I bet her kids could have gotten into Princeton too. One of the biggest benefits of Virginia schools is the enormous network and job opportunities here in NOVA. I've seen it at my work with VT in particular.

Princeton (and others) i now $70K a year. DCs both went in-state. i have been so impressed by the opportunities both DCs have had out of Va state universities. And the good news is that the money we saved is now going to law school ($96,000 a year in after tax dollars)

This is a great strategy.

Moreover, Princeton is nearly a potted Ivy, in any case.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Most people underestimate cost.

Amherst this fall is around 90k

Fordham, GWU, Georgetown and Syracuse all around 80k

Most college raise 3 percent a year. Do the math.

And guess what kids like to go away to school and a lot refuse to apply in state.

GWU tuition alone is 52k so even a kid living at home has it paid off.

I expect to pay around 160k a kid for my share. The average person three kids will need around 500k saved minimum. And that is cheaper schools with Merit aid and kid working summers

If kids go top notch schools you need one million three kids.

100% of kids become “in state” of whatever state they are attending in their second year.

That’s not true

[Anonymous]

When will our yahoo politicians (both parties) do something about the obscene cost bubble in college education?

Do we really believe our university are that much better than top universities in europe that don't have sushi bars and fifty million dollar gym facilities?

Did folks see the article that U Michigan has nearly 100 paid staff in its diversity office, alone?

Sanders at least talked about cost but didn't connect the dots that affordability requires a reduction in the operating costs of these places.

[Anonymous]

Anonymous wrote:
When will our yahoo politicians (both parties) do something about the obscene cost bubble in college education?

Do we really believe our university are that much better than top universities in europe that don't have sushi bars and fifty million dollar gym facilities?

Did folks see the article that U Michigan has nearly 100 paid staff in its diversity office, alone?

Sanders at least talked about cost but didn't connect the dots that affordability requires a reduction in the operating costs of these places.

That was one thing that really annoyed me about his “plan”. He clearly had not spent much time on college campuses to see where the $ was going.

[Anonymous]

How is putting money in a college fund have anything to do with a gift tax? Never worried about it and put $10-30K per year in.

[Anonymous]

Anonymous wrote:How is putting money in a college fund have anything to do with a gift tax? Never worried about it and put $10-30K per year in.

Gift tax applies to transfers of funds to any person, including your children. In fact, particularly your children. It's intended to prevent people from circumventing estate taxes by giving their kids $$ before they die. There is one special exemption that allows you to put $70,000 in a 509, but it has to be spread over 5 years, so I'm not sure that it really changes much. If you give someone an amount over the gift tax limit and don't pay the gift tax or file to apply against your exclusion, you are violating the law. You probably won't get caught unless you get an IRS audit.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Most people underestimate cost.

Amherst this fall is around 90k

Fordham, GWU, Georgetown and Syracuse all around 80k

Most college raise 3 percent a year. Do the math.

And guess what kids like to go away to school and a lot refuse to apply in state.

GWU tuition alone is 52k so even a kid living at home has it paid off.

I expect to pay around 160k a kid for my share. The average person three kids will need around 500k saved minimum. And that is cheaper schools with Merit aid and kid working summers

If kids go top notch schools you need one million three kids.

100% of kids become “in state” of whatever state they are attending in their second year.

That’s not true

Um, yeah. That’s not how it works. Attending college does not equal residency.

[Anonymous]

I always wondered about that. If you move to another state, and rent an apartment year-round, and get a drivers license in that state, doesn't that make you a resident of that state now?

[Anonymous]

Anonymous wrote:

Anonymous wrote:How is putting money in a college fund have anything to do with a gift tax? Never worried about it and put $10-30K per year in.

Gift tax applies to transfers of funds to any person, including your children. In fact, particularly your children. It's intended to prevent people from circumventing estate taxes by giving their kids $$ before they die. There is one special exemption that allows you to put $70,000 in a 509, but it has to be spread over 5 years, so I'm not sure that it really changes much. If you give someone an amount over the gift tax limit and don't pay the gift tax or file to apply against your exclusion, you are violating the law. You probably won't get caught unless you get an IRS audit.

The money in a 529 is still considered to be the parent's.

[Anonymous]

Anonymous wrote:I always wondered about that. If you move to another state, and rent an apartment year-round, and get a drivers license in that state, doesn't that make you a resident of that state now?

Only if you stop going to college for a set time (which depends on each state, usually at least a year) Some have stricter rules after being accepted from out of state.