Is $1000/mo in a 529 enough?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What's your HHI?

You're missing out on tax benefits putting that much in a 529.

At the very least, put it in two 529s (one in your name, one in your DH's). If you are eligible for a Roth, I would split the thousand as $330 in your 529, $330 in your husband's, and the balance split between two Roth IRAs. You can use Roth money to pay for college, and in the event your child doesn't end up needing it, you still have it for your retirement.

HHI is ~350k. we both max out 401(k) (spouse has a 9% match; I have none because I work in biglaw). In addition, we put away about $4000 in index funds. We also each backdoor the maximum into Roth IRA accounts.

We each put the minimum into the state-sponsored 529 for the write-off. The remainder goes into a 529 with Vanguard (fees are lower). What would be better for us to do?

In MD you can open 529 accounts in your names and each other's names. This way you can take advantage of the state deductions. Then you roll over to vanguard for the lower fees (at most once a year per beneficiary).

Are you saying we can have four accounts? If so, I need to do that.

Also need to roll everything over from T Rowe to Vanguard - haven't done that yet.

[Anonymous]

Anonymous wrote:

Anonymous wrote:What's your HHI?

You're missing out on tax benefits putting that much in a 529.

At the very least, put it in two 529s (one in your name, one in your DH's). If you are eligible for a Roth, I would split the thousand as $330 in your 529, $330 in your husband's, and the balance split between two Roth IRAs. You can use Roth money to pay for college, and in the event your child doesn't end up needing it, you still have it for your retirement.

HHI is ~350k. we both max out 401(k) (spouse has a 9% match; I have none because I work in biglaw). In addition, we put away about $4000 in index funds. We also each backdoor the maximum into Roth IRA accounts.

We each put the minimum into the state-sponsored 529 for the write-off. The remainder goes into a 529 with Vanguard (fees are lower). What would be better for us to do?

Make more money.

[Anonymous]

Anonymous wrote:OP here. I was talking with a friend recently, who said "well you could be putting away more than that," which kind of surprised me because I thought we were actually saving on the higher end.

You shouldn't be sharing these details with friends. Probably why she responded the way she did.

[Anonymous]

NP here. I found this online calculator helpful: http://www.savingforcollege.com/college-savings-calculator/.

HHI is $220k. We have a 7, 4 and 2 year old. $150k saved in 529s so far. We intend to pay for out of state public universities. Based on the above mentioned calculator, we need approx. $5k/year for the 2 year old.--her 529 balance is $40k. We also purchased a rental property before kids to fund college. Current equity is already $200k but we still have a way to go to fund 529s.

[Anonymous]

We didn't think so. Our FA advised us to bump it up to 1250 per kid (x3). I'd rather over save than under because they can use any extra money for grad school.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here. I was talking with a friend recently, who said "well you could be putting away more than that," which kind of surprised me because I thought we were actually saving on the higher end.

You shouldn't be sharing these details with friends. Probably why she responded the way she did.

Np. A lot of people assume college will be around 100k a year by then. It's already at slightly over 70k (sticker). 1000 a month won't cut it if it's up to 100k a year.

[Anonymous]

Anonymous wrote:We didn't think so. Our FA advised us to bump it up to 1250 per kid (x3). I'd rather over save than under because they can use any extra money for grad school.

+ 1

This is how much we do. 8 yo has 150k I think.

[Anonymous]

Anonymous wrote:Really? Of course it's enough.

Hope that your life continues to be predictable and privileged to your family so that money stays put and you are able to give your child such a comfortable start in life.

Yeah, OP, I don't mean this meanly. But you can google any compound interest calculator and figure out how much you'll have in 18 years.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP here. I was talking with a friend recently, who said "well you could be putting away more than that," which kind of surprised me because I thought we were actually saving on the higher end.

You shouldn't be sharing these details with friends. Probably why she responded the way she did.

Np. A lot of people assume college will be around 100k a year by then. It's already at slightly over 70k (sticker). 1000 a month won't cut it if it's up to 100k a year.

Actually it will. 1000 a month for 18 years is 216k. This is without any interest/appreciation.

[Anonymous]

So sad to see so many anticipating paying full freight.

[Anonymous]

$12,000 a year for 16 years is enough for one four-year private college degree at an elite university with no debt and assuming no financial aid. Congrats - you just signed up for the most expensive down payment plan ever!

[Anonymous]

How can someone who makes $350k a year be so stupid?

[Anonymous]

Bwahahahahahahahah

[Anonymous]

Anonymous wrote:So sad to see so many anticipating paying full freight.

+1. I am positive that I'm underestimating the true expense college will be when my 3 children are ready to attend but I also think it's important to consider other options than full payment for children at private university. I see a $1,000 for 1 child an incredible amount to be saved each month for college for the next 16 years. I am dumbfounded that someone who makes an income so high could be asking such a dumb question. Really, it is a silly question. She has 1 child, not 5. She has a substantial income and is putting away a great deal of money elsewhere and is asking us if $1K is enough. She is either really dense or a huge braggart. Either way

[Anonymous]

Anonymous wrote:How can someone who makes $350k a year be so stupid?

Unfair, isn't it? You're probably brilliant and don't make dick.