Is $1000/mo in a 529 enough?

[Anonymous]

What an obnoxious post.

I hope college ends up being free for everyone, hopefully by taxing really high earners like OP.

[Anonymous]

u mad? oh yeah u mad.

[Anonymous]

I don't understand why everyone's so nasty to OP. I think it's a fair question given no one really knows how much it will cost in 18 years. What's wrong with plan for the worst and hope for the best approach?

[Anonymous]

Anonymous wrote:I don't understand why everyone's so nasty to OP. I think it's a fair question given no one really knows how much it will cost in 18 years. What's wrong with plan for the worst and hope for the best approach?

Well I think OP is an idiot for discussing this with a friend. It's inappropriate and boring.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don't understand why everyone's so nasty to OP. I think it's a fair question given no one really knows how much it will cost in 18 years. What's wrong with plan for the worst and hope for the best approach?

Well I think OP is an idiot for discussing this with a friend. It's inappropriate and boring.

I think you're poor and jealous.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don't understand why everyone's so nasty to OP. I think it's a fair question given no one really knows how much it will cost in 18 years. What's wrong with plan for the worst and hope for the best approach?

Well I think OP is an idiot for discussing this with a friend. It's inappropriate and boring.

I think you're poor and jealous.

You think I'm poor and jealous because I think it's tacky to talk about personal finances with friends?

[Anonymous]

NP here. I discuss finance issues with close friends. I don't get what's strange about that.

[Anonymous]

Anonymous wrote:NP here. I discuss finance issues with close friends. I don't get what's strange about that.

Oh my god were you people raised in barns? Not ok!

We make the same amount as OP and it would never in a million years occur to me to seek finance advice on this site. You really lack critical thinking skills, in addition to manners, OP.

[Anonymous]

Anonymous wrote:

Anonymous wrote:NP here. I discuss finance issues with close friends. I don't get what's strange about that.

Oh my god were you people raised in barns? Not ok!

We make the same amount as OP and it would never in a million years occur to me to seek finance advice on this site. You really lack critical thinking skills, in addition to manners, OP.

It is perfectly OK to discuss it with close friends. I don't and I wouldn't but I still don't see what's so bad about it.

- np

[Anonymous]

Anonymous wrote:

Anonymous wrote:NP here. I discuss finance issues with close friends. I don't get what's strange about that.

Oh my god were you people raised in barns? Not ok!

We make the same amount as OP and it would never in a million years occur to me to seek finance advice on this site. You really lack critical thinking skills, in addition to manners, OP.

So weird. It's a anon board and why wouldn't I discuss finances with my very close friends? They're my friends after all.

[Anonymous]

Anonymous wrote:I don't understand why everyone's so nasty to OP. I think it's a fair question given no one really knows how much it will cost in 18 years. What's wrong with plan for the worst and hope for the best approach?

I think if OP really does not have a clue if $1,000/mo college savings for a 2 year old is a lot or not, I feel bad for her. I will not be mean to the ignorant however. I only get nasty when I think people are trying to rub in their circumstances.

[Anonymous]

Anonymous wrote:

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).

I have been thinking of rolling my MD account into vanguard. But there is a second tax benefit. You don't pay taxes on capital gains, which over 18 years hopefully will be considerable. If you keep it in the MD account, you don't pay state capital gains taxes, but I believe you would have to pay them from the vanguard or any other non-MD plan. (There would be no fed cap gains tax either way.). Not sure whether expected tax savings makes the higher fees worth it or not.

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:NP here. I discuss finance issues with close friends. I don't get what's strange about that.

Oh my god were you people raised in barns? Not ok!

We make the same amount as OP and it would never in a million years occur to me to seek finance advice on this site. You really lack critical thinking skills, in addition to manners, OP.

And herein lies a big difference. If you were raised in old money, you don't discuss finances. People who weren't raised with money but have a decent income now tend to be more open with it.

[Anonymous]

Anonymous wrote:What an obnoxious post.

I hope college ends up being free for everyone, hopefully by taxing really high earners like OP.

+1

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:NP here. I discuss finance issues with close friends. I don't get what's strange about that.

Oh my god were you people raised in barns? Not ok!

We make the same amount as OP and it would never in a million years occur to me to seek finance advice on this site. You really lack critical thinking skills, in addition to manners, OP.

So weird. It's a anon board and why wouldn't I discuss finances with my very close friends? They're my friends after all.

It's bad manners and it puts people in an awkward position. Some people may not be saving for college because they spend too much money...others may be relying on family money and may not need to save in 529 plans. It's kind of a no win situation discussing this with friends. What's to gain? Are you going to seriously start saving more or less because of what a friend saves or doesn't save? Do you also compare mortgage payments and brokerage accounts? You're really clueless if you think you should be sharing what you're contributing to a 529 plan. It's fine to complain about college costs or something very general, but not talk numbers. I'd maybe reconsider your approach of discussing with friends and even think back to these conversations and see if you can pick up on the awkwardness now that you've been called out on it. There's a good chance your friend was criticizing you for not saving enough only because you were dumb enough to bring it up to begin with!