how much is enough for 529 accounts

[Anonymous]

Hey OP - I just want to say that I think you've done an amazing job saving all that, on a HHI of 165K. Wow!

[Anonymous]

Anonymous wrote:We funded our children's 529's at the level of expected costs for the average in state public school. Then we put more into a fund that we designated as "college", but isn't as far as taxes are concerned up to the cost of an out of state public college for both children. If they want to go private then will have to make up the rest in merit aid.

Retirement savings should come before college savings.

We did that too but it came back to bite us as we did use it/are using it for college but the earnings on the non 529 fund were taxable. It made me wish we had moved it to the 529 when the market was down. Worse, it is in an UGMA account (pre 529s) and technically that account now belongs to the children since both are over 18. while it gets taxed at the kid rate it is causing some complications now that the kids actually have summer earnings.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We funded our children's 529's at the level of expected costs for the average in state public school. Then we put more into a fund that we designated as "college", but isn't as far as taxes are concerned up to the cost of an out of state public college for both children. If they want to go private then will have to make up the rest in merit aid.

Retirement savings should come before college savings.

We did that too but it came back to bite us as we did use it/are using it for college but the earnings on the non 529 fund were taxable. It made me wish we had moved it to the 529 when the market was down. Worse, it is in an UGMA account (pre 529s) and technically that account now belongs to the children since both are over 18. while it gets taxed at the kid rate it is causing some complications now that the kids actually have summer earnings.

Ours are not in the children's name and the investments have done better than the 529s eliminating the tax issue.

[Anonymous]

Anonymous wrote:Hey OP - I just want to say that I think you've done an amazing job saving all that, on a HHI of 165K. Wow!

OP here. Thank you very much and thank you for the advice, everyone.

[Anonymous]

Anonymous wrote:Do you already have a Roth IRA? If not, make sure you put $11k per year into that ($5500 for you and spouse each). That money can be used for retirement and grows tax free, but contributions can be taken out at any time for any reason including college, so it's there if you need it.

If you kids are working, make sure you fund Roth IRAs for them as well. It's a good savings vehicle for them and not included in tuition/financial aid calculations

[Anonymous]

Anonymous wrote:Taken from Duke's website


2014-2015 ESTIMATED COST OF ATTENDANCE

Tuition and Fees $47,488
Room $6,526
Board $6,050
Books and Personal Expenses $3,466
Estimated Cost of Attendance $63,530

you can save a lot by living off campus. Also most kids at Duke are receiving some aid, scholarships.

14k fo room, board, books and personal expenses? School is not 12 months

[Anonymous]

Anonymous wrote:

Anonymous wrote:Taken from Duke's website


2014-2015 ESTIMATED COST OF ATTENDANCE

Tuition and Fees $47,488
Room $6,526
Board $6,050
Books and Personal Expenses $3,466
Estimated Cost of Attendance $63,530

This is such a racket. Obscene tuition rates.

+1000

[Anonymous]

Anonymous wrote:Child #1 is starting high school in the fall and his 529 is worth $166K.
Child #2 is starting 6th grade in the fall and her 529 is worth $112K.

Both kids are academic high achievers and at least as of now I expect they will attend 4 year private colleges. Household income is about $165K.

Should we quit funding these accounts now (except to get the tax deduction) and put more money into retirement savings?

We're done. We have a rising 10th grader with 115K and a rising 7th grader with 105K.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Taken from Duke's website


2014-2015 ESTIMATED COST OF ATTENDANCE

Tuition and Fees $47,488
Room $6,526
Board $6,050
Books and Personal Expenses $3,466
Estimated Cost of Attendance $63,530

you can save a lot by living off campus. Also most kids at Duke are receiving some aid, scholarships.

14k fo room, board, books and personal expenses? School is not 12 months

I'm a Dukie and would never send my kids there. We don't have a prayer of getting aid since our HHi is around $450K. No way is it worth more than twice what U.Va. charges in state.

[Anonymous]

Anonymous wrote:We funded our children's 529's at the level of expected costs for the average in state public school. Then we put more into a fund that we designated as "college", but isn't as far as taxes are concerned up to the cost of an out of state public college for both children. If they want to go private then will have to make up the rest in merit aid.

Retirement savings should come before college savings.

+1 yes

[Anonymous]

Anonymous wrote:

Anonymous wrote:Taken from Duke's website


2014-2015 ESTIMATED COST OF ATTENDANCE

Tuition and Fees $47,488
Room $6,526
Board $6,050
Books and Personal Expenses $3,466
Estimated Cost of Attendance $63,530

you can save a lot by living off campus. Also most kids at Duke are receiving some aid, scholarships.

14k fo room, board, books and personal expenses? School is not 12 months

Nobody lives off campus at Duke. The personal expense number is way low if you join a fraternity or sorority or go on spring break.

[Anonymous]

Agree that the cost-benefit proposition for 99% of private schools isn't there. OP, if you are in VA, your child can absolutely get into the top med/law schools from UVA and all of the top employers recruit there otherwise. If your child is STEM focused, VA Tech is a great school. I don't know enough about UMD, but I do hear it's getting more competitive.

We plan to also fund enough for 4 years at in-state schools. If we can pay for more out of pocket when the time comes and we think it's worth it, we will. But I'm not planning on it.

[Anonymous]

Anonymous wrote:Agree that the cost-benefit proposition for 99% of private schools isn't there. OP, if you are in VA, your child can absolutely get into the top med/law schools from UVA and all of the top employers recruit there otherwise. If your child is STEM focused, VA Tech is a great school. I don't know enough about UMD, but I do hear it's getting more competitive.

We plan to also fund enough for 4 years at in-state schools. If we can pay for more out of pocket when the time comes and we think it's worth it, we will. But I'm not planning on it.

I plan on cutting the last funding check for our kid after the first of the year. 4YO and we will have $125K in the account - by my math we should end with +/- $300K at 6 or 7% growth - may or may not be enough but it is way too hard to look that far into the future.

[Anonymous]

Anonymous wrote:Private schools are a waste of money, even for "high achievers." Go public undergrad and private (or top public) grad school.

-Signed, a former top 10 law school admissions officer

Maybe the kid won't want to go to grad school. At this point I doubt our son will, unless he changes in college.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Agree that the cost-benefit proposition for 99% of private schools isn't there. OP, if you are in VA, your child can absolutely get into the top med/law schools from UVA and all of the top employers recruit there otherwise. If your child is STEM focused, VA Tech is a great school. I don't know enough about UMD, but I do hear it's getting more competitive.

We plan to also fund enough for 4 years at in-state schools. If we can pay for more out of pocket when the time comes and we think it's worth it, we will. But I'm not planning on it.

I plan on cutting the last funding check for our kid after the first of the year. 4YO and we will have $125K in the account - by my math we should end with +/- $300K at 6 or 7% growth - may or may not be enough but it is way too hard to look that far into the future.

well, whoopee do. How do your immense riches help the OP? DId you do that on a salary of $165k?