How much to put into 529s?

[Anonymous]

We have some money coming in from an inheritance and want to put a large portion of it towards our kids' 529s. What is everyone's thought as to how much is enough? We'd be paying for college only, and for now it seems all of the kids would do some kind of 4 year college. Of course, we know that may change. Kids are 13, 10, and 7.

[Anonymous]

$100k, $75k, $50k. The younger ones have time to add interest.

[Anonymous]

Zero. Horrible investment choices, high fees, bad customer service, and lots of rules.
High growth stocks, some funds because one kid is 13 and pay as needed.

[Anonymous]

Who is inheriting the money? You or your spouse ?

[Anonymous]

We only put in the amount that we get a state tax deduction for which is $20,000 a year.

[Anonymous]

We have $200k in ours for our 4yo and will not contribute more for a while

[Anonymous]

Get the balances to
250K 13 year old
200K 10 year old
150K 7 year old

[Anonymous]

The question is :
When DCUMers say fully funded 529, what is the balance you expect that account to have when your kid starts college?

[Anonymous]

Anonymous wrote:The question is :
When DCUMers say fully funded 529, what is the balance you expect that account to have when your kid starts college?

This is what most of us mean:
The Full Freight of 4 year Tuition Room and Board for private. Assume 90K with 3% increase every year until your child graduates.

[Anonymous]

Anonymous wrote:Who is inheriting the money? You or your spouse ?

+1. Protect some of that if possible in a separate account. You can still fund from it when you want to for family needs.

[Anonymous]

Anonymous wrote:Get the balances to
250K 13 year old
200K 10 year old
150K 7 year old

If the inheritance is in the multiple millions, I would do this. This is a "you have no restrictions" setting for all kids when it comes time to choose a school. If the inheritance is $500k, I would keep some outside of college savings. So my answer is: need more information.

[Anonymous]

Anonymous wrote:We have some money coming in from an inheritance and want to put a large portion of it towards our kids' 529s. What is everyone's thought as to how much is enough? We'd be paying for college only, and for now it seems all of the kids would do some kind of 4 year college. Of course, we know that may change. Kids are 13, 10, and 7.

How much do you have?

We have nearly $180K in our kid's 529 and it won't cover most private or OOS options. You may say "then go instate" but that is not always the best option. And there are dozens of reason why this may be the case.
Put at least $200K/each in the fund for each kid, pref. closer to $300K.

[Anonymous]

You really have to study the fees. 0.6% fir example, is a large fee. If you have a good state plan (do research), get a state tax deduction, and go with something equivalent to the S&P 500, then I think it’s fine.

[Anonymous]

Anonymous wrote:Zero. Horrible investment choices, high fees, bad customer service, and lots of rules.
High growth stocks, some funds because one kid is 13 and pay as needed.

What are you talking about? IN VA American funds whose fees are not bad and performance is great.

[Anonymous]

I would do 180k per kid because that’s the max gift tax amount (does require a 709 though) and it’s a solid amount.

The person who complains about 529 has no idea what they are talking about. The tax-free compounding is totally worth it. Whether the instate deduction is worth up if more iffy, depending on your state and how much you put in, but at those amounts I’d put it in Utah’s plan and not worry about the state tax deduction.