do we have enough saved for college

[Anonymous]

Two kids, $ and 6 (kinder). We have about 350K saved in their 529 accounts, thanks to chipping in all bonuses and overtime pay. The goal is to have roughly about 800K by the time they're in college, compound interest calculator says that we can be almost there if we chip in 5K annually with a 5.5% return. (750K) We'll probably chip in a little more in the next year or two and then let it ride. Hopefully the return will be higher but conservative estimate.

The rationale for 400K would be if both attend public, 400ish each would be fine to cover public, plus chipping in for Roth IRAs to get started, and some leftover for grad or otherwise.

If one wants private, we could help cashflow the rest. Ditto if both want/deserve private (I doubt it, chances are that at least one would go public), though it'd be a little more painful.

Thoughts on 800K being the target? I am shifting more towards putting extra $ in the brokerage vs the 529 since we have more flex w/the brokerage.

[Anonymous]

Lol kid #1 is 4 and the other is 6. Not $. Right now they are like negative $, all the time.

[Anonymous]

Another typo, I meant, the rationale for 800K is to be 400K each kid

[Anonymous]

750K is not enough these days. Our target is 1M for 2 kids

[Anonymous]

I think that's a fine target. Similar to what we're planning. I'd bet my children will attend publics, like we did.

[Anonymous]

It's acceptable. I would bear in mind two things:

1. State Us will get more and more competitive, as doughnut-hole families are financially squeezed out of the out-of-state and private options. Don't leave out the fact that these days, only academically strong students can pick where they go. UMD and UVA get more selective every year. UVA is actually very competitive, and UMD is getting there. Raise your kids with the understanding that academics are a priority. Last year, I know some kids who were rejected from UMD with a 4.2 weighted GPA, multiple AP courses, and average extra-curriculars.

2. Tuition costs have historically risen faster than inflation (averaged out over decades). There's a limit to how much you can save - you don't want to live a miserable life! - but you might have to cash flow some of the college costs even if you meet your target and they get in-state tuition.

[Anonymous]

Ughhhhhhhhh it's so expensive

[Anonymous]

Given that tuition will rise more quickly than inflation possibly, does anyone like the tuition track option for the 529 for a fixed income asset? Basically pegs the value to the average cost of tuition in VA.

[Anonymous]

You have $350k at preschool age already. Yes, you're fine, now go away. Some of us have real problems. Did you just post to brag?

[Anonymous]

Dumb thread of the day.

[Anonymous]

I knew without opening this thread it would be another “I have $10 million can I retire at 50” thread so why did I open it

[Anonymous]

Anonymous wrote:Two kids, $ and 6 (kinder). We have about 350K saved in their 529 accounts, thanks to chipping in all bonuses and overtime pay. The goal is to have roughly about 800K by the time they're in college, compound interest calculator says that we can be almost there if we chip in 5K annually with a 5.5% return. (750K) We'll probably chip in a little more in the next year or two and then let it ride. Hopefully the return will be higher but conservative estimate.

The rationale for 400K would be if both attend public, 400ish each would be fine to cover public, plus chipping in for Roth IRAs to get started, and some leftover for grad or otherwise.

If one wants private, we could help cashflow the rest. Ditto if both want/deserve private (I doubt it, chances are that at least one would go public), though it'd be a little more painful.

Thoughts on 800K being the target? I am shifting more towards putting extra $ in the brokerage vs the 529 since we have more flex w/the brokerage.

To me 800k seems aggressive as a goal with the intention of public school, but not bad as a goal in general - could work for OOS public, private, or public + grad + Roth.

If you want to hit 800k in ~14 years and already have 350k, you should be able to stop now as long as you're invested in a market fund and not bonds or fixed income or anything.

[Anonymous]

We are aiming for $3M per kid. We just don’t want them to be limited, ya know??

[Anonymous]

Anonymous wrote:750K is not enough these days. Our target is 1M for 2 kids

OP stated they could cash flow more. So it's a personal choice. If you at all think they kids might want to attend what is now a $85K+ school, then yes you need $500K/kid or a method for paying for that, as it does not all need to be in the 529

[Anonymous]

My kid is about to graduate and his full pay school cost us about $35k/year including room and board, less when he started due to tuition increases. This is in-state tuition at an SEC school but he had zero assistance (no scholarships, no aid). I can't imagine saving $400k per kid for college.