Future college costs - what am I missing?

[Anonymous]

Anonymous wrote:OP,

The college savings plans don't allow you to select individual stocks. Since we have expertise in tech and knew some companies had great fundamentals, we opened regular trading accounts and bought Apple, Amazon, Netflix, Tesla (sold off since when Elon became too political), Nvidia and some others. Those tech stocks FAR outpaced returns and any tax incentives on any 529 we could have had.

I know the market is uncertain right now due to tariffs, but you should consider investing in companies you feel have solid growth potential.

You didn’t need tech expertise to invest in those companies which are all part of the Mag 7. So many non-tech people were buying the same companies. You make an interesting point though about individual stocks not available in 529s. Of course when you sell you could be paying up to 23.8% in taxes depending on your income and LTCG and NIIT taxes.

[Anonymous]

[img]

Anonymous wrote:OP, my child is in college NOW and all I have in her 529 is about $40,000.

We are managing. She's borrowing $5000 per year, and earning another $5000 from her summer job that she contributes. That's $10,000.

I take $10,000 from the 529.

And I cash flow $10,000 (about $1,000 per month).

That's $30,000 for the year which covers her out of state tuition, room and board, more or less. (she has a merit scholarship bringing cost of attendance close to in-state.)

So I cannot comprehend how you won't be in a MUCH better position if you already have $30K in your kid's 529 AND you are contributing $7200 annually?

With AI and abolishing of Dept of Ed, no more Federal loans and no more cash flow from parents who are laid off at 50 and never find another job. It’s okay because college won’t be worth it because no jobs.

[Anonymous]

Anonymous wrote:OP,

The college savings plans don't allow you to select individual stocks. Since we have expertise in tech and knew some companies had great fundamentals, we opened regular trading accounts and bought Apple, Amazon, Netflix, Tesla (sold off since when Elon became too political), Nvidia and some others. Those tech stocks FAR outpaced returns and any tax incentives on any 529 we could have had.

I know the market is uncertain right now due to tariffs, but you should consider investing in companies you feel have solid growth potential.

This is such bad advice.

First most people aren’t going to beat the market, even with your “expertise in tech” is just dumb luck. Tesla has always been a meme stock for example, even before politics.

Second, if you are IN tech you should or be concentrating your wealth into the same industry your career/wages come from. You see this tragedy with employee stock purchase plans during the dot com bubble. Laid off and your company implodes, good times. But industry risk is legit, and your hiring prospects are tied to your major investments.

Sure Google and NVIDIA etc all are making mad money and seem to have moats, but that should also be priced in, etc. maybe you are a generational investing talent, but MOST people aren’t and should be investing in diversified funds.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP,

The college savings plans don't allow you to select individual stocks. Since we have expertise in tech and knew some companies had great fundamentals, we opened regular trading accounts and bought Apple, Amazon, Netflix, Tesla (sold off since when Elon became too political), Nvidia and some others. Those tech stocks FAR outpaced returns and any tax incentives on any 529 we could have had.

I know the market is uncertain right now due to tariffs, but you should consider investing in companies you feel have solid growth potential.

This is such bad advice.

First most people aren’t going to beat the market, even with your “expertise in tech” is just dumb luck. Tesla has always been a meme stock for example, even before politics.

Second, if you are IN tech you should or be concentrating your wealth into the same industry your career/wages come from. You see this tragedy with employee stock purchase plans during the dot com bubble. Laid off and your company implodes, good times. But industry risk is legit, and your hiring prospects are tied to your major investments.

Sure Google and NVIDIA etc all are making mad money and seem to have moats, but that should also be priced in, etc. maybe you are a generational investing talent, but MOST people aren’t and should be investing in diversified funds.

We put in a total of 140k in each kids 529 when younger. When college came we had over 500k in each. Virginia has good options -- American Funds.

[Anonymous]

i have a kid in college now and despite saving for it we pay out of pocket from our income. we have one kid headed to medical school which we plan to help pay for. we make wayyyyy more money now then when our kids were little.

[Anonymous]

Anonymous wrote:[img]

Anonymous wrote:OP, my child is in college NOW and all I have in her 529 is about $40,000.

We are managing. She's borrowing $5000 per year, and earning another $5000 from her summer job that she contributes. That's $10,000.

I take $10,000 from the 529.

And I cash flow $10,000 (about $1,000 per month).

That's $30,000 for the year which covers her out of state tuition, room and board, more or less. (she has a merit scholarship bringing cost of attendance close to in-state.)

So I cannot comprehend how you won't be in a MUCH better position if you already have $30K in your kid's 529 AND you are contributing $7200 annually?

With AI and abolishing of Dept of Ed, no more Federal loans and no more cash flow from parents who are laid off at 50 and never find another job. It’s okay because college won’t be worth it because no jobs.

i work with FSA and nobody is abolishing federal loans.

[Anonymous]

Anonymous wrote:You'll be earning a lot more in 18 years, so you cash flow the 4th year, and keep saving during the first 3

This is what we’re ending up doing. One kid in college and another a junior in HS. We have a little over $300K saved for each. The last year will be paid from savings, not from the 529. In hindsight, I wish we had put a little more into the 529 so everything was covered, but we thought college would be closer to the $300-350 range, not the $400 it’s turning out to be.