Child #1 spent $110K at JMU for 9 semesters and an overseas summer program. 2021 graduation, fully launched.
Child #2 spent $120K at VT for 8 semesters. 2024 graduation upcoming( but still paying rent thru July). That was the "all in" cost for instate. The periodic investment over time was $124K into the 529's, I withdrew $208K, market gains were $84K. So, 2 kids in state for $230K. $208K was covered by 529 plans, cash flowed the delta. |
Good job planning and executing!
I have Child #1 going to college in August and looking at whether I should cash flow as much of the first payment as possible to preserve the 529. It's so hard to make these decisions. Did you have kid pay $2000 to take the AOTC? |
This is so helpful, thank you! |
How long did you have the 529 for? |
What is AOTC?! |
Congrats! Well done! |
Very helpful to know actual real-life use cases of the 529, thank you! |
Op here...
Not eligible for AOTC. Started each 529 when my children turned 1,not sure why but that's what I did. So 17 years before they started college. Initially, it was $50 per month per kid. Then $150, $300 and finally $500 as circumstances allowed overtime. Funded our retirement throughout. That was the #1 priority. Started 80/20 equities/bonds. As kids reached junior year of high school, put the first year of college into money market funds etc. within the plan. Then moved the sophomore year $. |
Thanks so much for sharing, OP! Still in the early years here doing $150 a month (DS is 3) and wondering if that's enough, but the daycare years make it tougher to swing more. Appreciate this perspective - congratulations to you and your children! |
Would have been so much more in simple s and p 500 etf. |
This is really helpful. We have about $90k in 529s for each of our kids so far and they are in 1st and 4th grade. Seems we are in good shape for in-state, which has always been my goal (to have in-state fully funded).
I get nervous when people tell me that yearly costs will be $80k-100k. |
thanks for sharing! |
You are doing great! Seriously consider funneling at least 50-75% of daycare (more if you really can manage it) into 529 once they enter K. Then you may be able to pull back sooner and stop investing once you hit your desired level and let it grow. |
Not for in-state or OOS/Privates that give merit. Once you give up the notion that your kid must attend a T50 school, you will realize that there are tons of great options, and many will give merit (if not FA eligible). You just need to search a tier or two below what's a "reach/target" for your kid. Currently, a good student (not great, but just good, think 3.5UW+ HS gpa and 1250Sat) can find schools that cost only $30Kper year if that is all you can pay. |
OP this is great information. We are trying to figure out when to stop funding. When did you stop funding the 529s?
Kid 1: 14 529 Balance: $128K Monthly Contribution: $500 Kid 2: 12 529 Balance: $110K Monthly Contribution: $500 As of now we are assuming both kids will attend in state (VA) public schools. |