How much do you save for 529?

[Anonymous]

$500/month per kid (we have two, ages 5 and 3, so its $1000 a month total). We also used some of DH's annual bonus money to jump start each kids fund with an additional $20K the first year they were born. Based on our research, this seems to be sufficient - especially since we still plan to funnel a little extra from DH's annual bonus into their college savings every other year.

[Anonymous]

Anonymous wrote:I have a 4 year old and 2 year old. I have 22k in one 529 and 17k in another. My plan was to put 4K in each every year but now I am starting to think it’s not enough and wondering what everyone else does.

OP you are off to a good start. A lot depends on what type of school you are saving for (ex. $40K in state university vs. $60K private). We were saving $400/month per child originally then bumped it up to $500 when they turned 2. From 3 on we've been saving $600/month per child. What helped us is our contributions are recurring and we timed the increase to coincide with DH's last annual raise so we didn't feel the increase in out take home pay.

[Anonymous]

Just got a huge windfall so now DS has $96k. I plan on still putting in $100 a month, but otherwise nothing else. He's 9, and I only intend on paying 4 year, in state, public.

[Anonymous]

$4k/kid/year.

Hoping to up it a bit next year when our youngest is done with daycare.

For DC tax purposes, we can only take $4k/year because we file married filing separately on the same return. You definitely can’t take $8k/kid in DC, no matter which way you file.

[Anonymous]

Not much but something is better than nothing. I am not going to feel bad because I can only put 2k/year away right now during the daycare years. Maybe our situation will change, maybe it won't and that's okay-at least it is something for her to use.

[Anonymous]

I aim for 12,000 a year or 1,000 per month.

[Anonymous]

Anonymous wrote:

Anonymous wrote:8k per year per kid. This maxes the tax advantage in DC. It won't be enough, but we plan to cash flow the rest.

Are you sure? I thought it was $8,000 per year for a married couple, period. Like, in total, not per kid.

This is correct.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:8k per year per kid. This maxes the tax advantage in DC. It won't be enough, but we plan to cash flow the rest.

Are you sure? I thought it was $8,000 per year for a married couple, period. Like, in total, not per kid.

This is correct.

That was my post. I phrased it that way in response to the OP. We are married with 1 child, hence 8k per year per kid to max the DC tax advantage.

[Anonymous]

$8000 a year. Kid is 8 and we have over $60K, we started when she was 1 (and that first year we only put in $1000).

[Anonymous]

I hate to admit this but I'm counting on inheritance to help DW and I fully fund our 2 kids college education. We can probably save 1/2 only on our own.

[Anonymous]

There are really good in-state public schools in VA and MD. You can go to those for $20-25k/year all-in (tuition + room/board + fees). Even if college costs increase at 5% per year (and it's been like 2-2.5% above inflation per year for the last decade), that comes to about $250k total per kid.

To save up $250k per kid, a lump sum $60k invested at birth, or a $500/mo for 18 years ought to do it.

We're currently saving $400 per kid per month, and our 2 kids are infant/toddler. Maybe we'll up it when we get out of daycare. Maybe we'll keep it constant and just add to it with bonuses/windfalls over the years. Maybe we'll leave a shortfall and cashflow the rest from our salary while the kids attend college.

At a minimum, we should be able to cash flow the current $6k per year we're putting into each 529.

[Anonymous]

Also realize a lot of those calculators use 6-7% annual rate of return to be overly cautious. The average annualized total return for the S&P 500 index over the past 90 years is 9.8 percent. Yes there are some poor performing years, but if you are investing over the long term (10-15 years) you can expect at least 8% return average and maybe even 9%.

[Anonymous]

Anonymous wrote:$15/year per kid

Same. I'm starting to wonder if that is enough though or if we should be doing $20k...I saw that some schools are hitting the $75k a year mark.

[Anonymous]

Anonymous wrote:Also realize a lot of those calculators use 6-7% annual rate of return to be overly cautious. The average annualized total return for the S&P 500 index over the past 90 years is 9.8 percent. Yes there are some poor performing years, but if you are investing over the long term (10-15 years) you can expect at least 8% return average and maybe even 9%.

Yeah but you have to mentally factor in the big correction that is coming. That'll pull your 9.8% return right on down.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Also realize a lot of those calculators use 6-7% annual rate of return to be overly cautious. The average annualized total return for the S&P 500 index over the past 90 years is 9.8 percent. Yes there are some poor performing years, but if you are investing over the long term (10-15 years) you can expect at least 8% return average and maybe even 9%.

Yeah but you have to mentally factor in the big correction that is coming. That'll pull your 9.8% return right on down.

a big correction that is worse than anything that 90 YEAR average already reflects? nope. but yes, if you kids going to college in the next ~5 years then there is more risk than for those of us with kids going to college in 15 years