Paying for and saving for college - how do UMC people do it?

[Anonymous]

Only read the first few posts, not the rest of the pages, but OP, you are behind on both retirement and college savings. Where has your money been going?!

We have only ever made $250k HHI max, and yet we have saved over $2 mil. in retirement, and another $1 mil. of home equity and other investments, which include about $300k combined in 529s for two kids in middle school. This is even with paying off about $80k in student loans and no family help.

The good news for you is that your income is so high, you should be able to cash flow tuition every year if your kids go to an in state school.

[Anonymous]

Anonymous wrote:
UMD and many other schools do not allow freshmen commuters.

Of course they do.

[Anonymous]

We make 10% less than you and are 2 years younger, as are our kids. We max out a Roth 401k and a 403b each year and have for the last 15 years. We got a head start of $50k per kid in 529s owned by a grandparent when each kid was born. We contribute $500-750 per kid, per month to our own 529 plans.

[Anonymous]

Anonymous wrote:Only read the first few posts, not the rest of the pages, but OP, you are behind on both retirement and college savings. Where has your money been going?!

We have only ever made $250k HHI max, and yet we have saved over $2 mil. in retirement, and another $1 mil. of home equity and other investments, which include about $300k combined in 529s for two kids in middle school. This is even with paying off about $80k in student loans and no family help.

The good news for you is that your income is so high, you should be able to cash flow tuition every year if your kids go to an in state school.

I'm the OP. Some of these posts are so perplexingly nasty. "Where has your money been going?" I don't know if you're asking smugly or rhetorically or what. This particular poster also doesn't offer any useful tips as to how they save, where, etc. It's just another screechy "You're so behind!" post that is so gross and self-congratulatory. Ick.

Let's see: We only began making this much two years ago.

We paid for day care and tutoring and advocates for a child with learning issues.

My DH had sizable loans from grad school.

I work for myself and pay my own taxes.

I had a parent with a life-limiting illness, so we actually also live in the moment with experiences, restaurants, and some trips. Nothing ostentatious, but we don't take car trips once a year to cram into grandma's spare bedroom.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Only read the first few posts, not the rest of the pages, but OP, you are behind on both retirement and college savings. Where has your money been going?!

We have only ever made $250k HHI max, and yet we have saved over $2 mil. in retirement, and another $1 mil. of home equity and other investments, which include about $300k combined in 529s for two kids in middle school. This is even with paying off about $80k in student loans and no family help.

The good news for you is that your income is so high, you should be able to cash flow tuition every year if your kids go to an in state school.

I'm the OP. Some of these posts are so perplexingly nasty. "Where has your money been going?" I don't know if you're asking smugly or rhetorically or what. This particular poster also doesn't offer any useful tips as to how they save, where, etc. It's just another screechy "You're so behind!" post that is so gross and self-congratulatory. Ick.

Let's see: We only began making this much two years ago.

We paid for day care and tutoring and advocates for a child with learning issues.

My DH had sizable loans from grad school.

I work for myself and pay my own taxes.

I had a parent with a life-limiting illness, so we actually also live in the moment with experiences, restaurants, and some trips. Nothing ostentatious, but we don't take car trips once a year to cram into grandma's spare bedroom.

Also: "Behind" who? Get out of the rat race and learn how to be kind.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Only read the first few posts, not the rest of the pages, but OP, you are behind on both retirement and college savings. Where has your money been going?!

We have only ever made $250k HHI max, and yet we have saved over $2 mil. in retirement, and another $1 mil. of home equity and other investments, which include about $300k combined in 529s for two kids in middle school. This is even with paying off about $80k in student loans and no family help.

The good news for you is that your income is so high, you should be able to cash flow tuition every year if your kids go to an in state school.

I'm the OP. Some of these posts are so perplexingly nasty. "Where has your money been going?" I don't know if you're asking smugly or rhetorically or what. This particular poster also doesn't offer any useful tips as to how they save, where, etc. It's just another screechy "You're so behind!" post that is so gross and self-congratulatory. Ick.

Let's see: We only began making this much two years ago.

We paid for day care and tutoring and advocates for a child with learning issues.

My DH had sizable loans from grad school.

I work for myself and pay my own taxes.

I had a parent with a life-limiting illness, so we actually also live in the moment with experiences, restaurants, and some trips. Nothing ostentatious, but we don't take car trips once a year to cram into grandma's spare bedroom.

What kind of advice are you looking for? Now that you are making more money, save more! Then pick colleges where you can cash flow whatever you lack in savings. Done.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Only read the first few posts, not the rest of the pages, but OP, you are behind on both retirement and college savings. Where has your money been going?!

We have only ever made $250k HHI max, and yet we have saved over $2 mil. in retirement, and another $1 mil. of home equity and other investments, which include about $300k combined in 529s for two kids in middle school. This is even with paying off about $80k in student loans and no family help.

The good news for you is that your income is so high, you should be able to cash flow tuition every year if your kids go to an in state school.

I'm the OP. Some of these posts are so perplexingly nasty. "Where has your money been going?" I don't know if you're asking smugly or rhetorically or what. This particular poster also doesn't offer any useful tips as to how they save, where, etc. It's just another screechy "You're so behind!" post that is so gross and self-congratulatory. Ick.

Let's see: We only began making this much two years ago.

We paid for day care and tutoring and advocates for a child with learning issues.

My DH had sizable loans from grad school.

I work for myself and pay my own taxes.

I had a parent with a life-limiting illness, so we actually also live in the moment with experiences, restaurants, and some trips. Nothing ostentatious, but we don't take car trips once a year to cram into grandma's spare bedroom.

OP, you asked how other people do it. They save! The point is to show it's possible that even people with lower incomes than you have been able to save much more. The implication being that you may be overspending in other areas if you really want to prioritize funding college as your goal.

So okay, you have had circumstances which have taken a bite out of what you otherwise might have saved. But you are now making a healthy income that should be more than adequate. You are much more fortunate than other families making half of what you make. There should not be a problem here.

[Anonymous]

I wouldn’t stress it too much. Headline prices and net prices are very different. Maybe 2% of students pay those 70k+ tuitions that make the headlines. At your income even at Harvard you would not pay full freight. It’s the very competitive, but not top tier, where you actually have people paying those prices.

State schools are in the 25-40k range depending on state. Most private college discount significantly (so people think their kid is so smart and getting a “scholarship” and they are getting a deal…lol).

If you have 100-150k and cash flow a little you have like 90%+ of colleges covered.

[Anonymous]

We have a suburban home we purchased 13 years ago and similar income. I don’t see how you haven’t saved more to be honest. Our kids are 13 and 16 and have a total of 300k saved. We now only put away 1k/mo to maintain and will cash flow whatever remains. The 16yr old is interested in engineering school which is insanely competitive and he’ll most likely end up out of state or at private.

We have save in Avesta 2k/mo since they were little. We also max out 401k and my mega Roth so I don’t find saving for college and retirement incompatible with a 400k income
And a low mortgage.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Only read the first few posts, not the rest of the pages, but OP, you are behind on both retirement and college savings. Where has your money been going?!

We have only ever made $250k HHI max, and yet we have saved over $2 mil. in retirement, and another $1 mil. of home equity and other investments, which include about $300k combined in 529s for two kids in middle school. This is even with paying off about $80k in student loans and no family help.

The good news for you is that your income is so high, you should be able to cash flow tuition every year if your kids go to an in state school.

I'm the OP. Some of these posts are so perplexingly nasty. "Where has your money been going?" I don't know if you're asking smugly or rhetorically or what. This particular poster also doesn't offer any useful tips as to how they save, where, etc. It's just another screechy "You're so behind!" post that is so gross and self-congratulatory. Ick.

Let's see: We only began making this much two years ago.

We paid for day care and tutoring and advocates for a child with learning issues.

My DH had sizable loans from grad school.

I work for myself and pay my own taxes.

I had a parent with a life-limiting illness, so we actually also live in the moment with experiences, restaurants, and some trips. Nothing ostentatious, but we don't take car trips once a year to cram into grandma's spare bedroom.

Many of us have had the same expenses and still saved on much less income. It’s about life choices.

[Anonymous]

Anonymous wrote:I wouldn’t stress it too much. Headline prices and net prices are very different. Maybe 2% of students pay those 70k+ tuitions that make the headlines. At your income even at Harvard you would not pay full freight. It’s the very competitive, but not top tier, where you actually have people paying those prices.

State schools are in the 25-40k range depending on state. Most private college discount significantly (so people think their kid is so smart and getting a “scholarship” and they are getting a deal…lol).

If you have 100-150k and cash flow a little you have like 90%+ of colleges covered.

You sure?

[Anonymous]

This whole system reliant on parents saving or not is ridiculous. Kids have zero control over that.

[Anonymous]

I also want to point out something that I noticed in DC overall, and on the money board in particular.
When I was in DC, I perceived that a lot of people thrived on spreadsheets and order. Who were very into rule-following and organization. Not a lot of carefree artist types. I'm sure there were some, but overall it was very straight-and-narrow, follow an orderly path. I remember lots of guys when I was in my 20s who got off on talking about their retirement accounts, their condo in Reston, etc. I remember envying their predictability and their "path" as I always felt more creative and at times more haphazard.

Now, distill that into a board geared to finances and you'll find an even more concentrated subset of people for whom money is a HOBBY and a focus. Many people -- most people -- might not live this way. I really do not think most 40-somethings have millions in the bank and are maxing everything out and eat out once a month. But I think that if this is your THING -- and I think for many on this board, it might be -- it's easy to feel "behind" or like an outsider.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I wouldn’t stress it too much. Headline prices and net prices are very different. Maybe 2% of students pay those 70k+ tuitions that make the headlines. At your income even at Harvard you would not pay full freight. It’s the very competitive, but not top tier, where you actually have people paying those prices.

State schools are in the 25-40k range depending on state. Most private college discount significantly (so people think their kid is so smart and getting a “scholarship” and they are getting a deal…lol).

If you have 100-150k and cash flow a little you have like 90%+ of colleges covered.

You sure?

Don’t know about Harvard but my niece got a little over 20k, financial aid. Made the cost just over 50k all in. Her parents make a little more than OP. I hear Harvard is generous with their aid, even at 400k you get something.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I wouldn’t stress it too much. Headline prices and net prices are very different. Maybe 2% of students pay those 70k+ tuitions that make the headlines. At your income even at Harvard you would not pay full freight. It’s the very competitive, but not top tier, where you actually have people paying those prices.

State schools are in the 25-40k range depending on state. Most private college discount significantly (so people think their kid is so smart and getting a “scholarship” and they are getting a deal…lol).

If you have 100-150k and cash flow a little you have like 90%+ of colleges covered.

You sure?

Don’t know about Harvard but my niece got a little over 20k, financial aid. Made the cost just over 50k all in. Her parents make a little more than OP. I hear Harvard is generous with their aid, even at 400k you get something.

Sorry that’s at MIT.