How much do you save a month for kids college?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:$0. We will pay out of pocket and liquidate investments as needed.

This has me curious. Are you so wealthy that the tax savings aren't worth the added time and hassle? I don't clip coupons for this reason and I've always wondered how this scales up with greater wealth.

Im not impressed with the performamce of many of the college savingd plans out that as compared to what my portfolio returns. Haven't looked at the 529 in years...enlihgten me, how are the gains? We also have a few rental properties and one of those could get it done. Really why bother, i see a clear path already.

Well, for starters, the returns aren't taxed, so there's a 30% gain right there.

Long term cap is at 20%, but I'm really curious what the returns are. Whrn i checkes yrars ago, thry were miserable.

You can check online, but the returns are not great. Overall 5%. On the high risk option, around 12% (recently). Pretry much the 529Invest in an underpreformer and can have high fees.

A decent option for the masses, but if you all ready have a managed portfolio, you will do much better on your own, even when paying long term gains tax.

[Anonymous]

About $550 per month per child (ages 1, 5 and 7). We also have purchased prepaid tuition accounts - right now we have 1.5 years covered, but are aiming for 1-2 years total prepaid per child.

[Anonymous]

We have been doing $5k/kid a year, that's driven by md tax deduction. Looks like we need to do more if we plan to cover 4year tuition + basic expenses even for state college

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:$0. We will pay out of pocket and liquidate investments as needed.

This has me curious. Are you so wealthy that the tax savings aren't worth the added time and hassle? I don't clip coupons for this reason and I've always wondered how this scales up with greater wealth.

Im not impressed with the performamce of many of the college savingd plans out that as compared to what my portfolio returns. Haven't looked at the 529 in years...enlihgten me, how are the gains? We also have a few rental properties and one of those could get it done. Really why bother, i see a clear path already.

Well, for starters, the returns aren't taxed, so there's a 30% gain right there.

Long term cap is at 20%, but I'm really curious what the returns are. Whrn i checkes yrars ago, thry were miserable.

You can check online, but the returns are not great. Overall 5%. On the high risk option, around 12% (recently). Pretry much the 529Invest in an underpreformer and can have high fees.

A decent option for the masses, but if you all ready have a managed portfolio, you will do much better on your own, even when paying long term gains tax.

The expense ratio for the stocks index is .12, the international index is .19, and the bond index is .13. This is higher than Vanguard's best funds, but not by much, and certainly not enough to volunteer to pay capital gains tax unnecessarily. But then, you sound like a market timer.

[Anonymous]

$8k a year for the VA tax deduction. Opened the account when DS was a baby.

Beyond that, we will pay cash for a state school.

[Anonymous]

Anonymous wrote:$8k a year for the VA tax deduction. Opened the account when DS was a baby.

Beyond that, we will pay cash for a state school.

Wouldn't $8K/year for 22 years cover state school? And you can deduct more than $8000/year.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:$0. We will pay out of pocket and liquidate investments as needed.

This has me curious. Are you so wealthy that the tax savings aren't worth the added time and hassle? I don't clip coupons for this reason and I've always wondered how this scales up with greater wealth.

Im not impressed with the performamce of many of the college savingd plans out that as compared to what my portfolio returns. Haven't looked at the 529 in years...enlihgten me, how are the gains? We also have a few rental properties and one of those could get it done. Really why bother, i see a clear path already.

Well, for starters, the returns aren't taxed, so there's a 30% gain right there.

Long term cap is at 20%, but I'm really curious what the returns are. Whrn i checkes yrars ago, thry were miserable.

You can check online, but the returns are not great. Overall 5%. On the high risk option, around 12% (recently). Pretry much the 529Invest in an underpreformer and can have high fees.

A decent option for the masses, but if you all ready have a managed portfolio, you will do much better on your own, even when paying long term gains tax.

Ok, yea, i see that online now. Doesn't make sense for me at all. Im utilizing tax loss harvesting and have seen returns in the last 18 months upwards of 18%. On some individual tech stocks im played with (gambled) one in particluar has grown 32% in the last 3 months alone. With those tech stocks, i will say, I've dumped at the 1yr mark, so in some cases I'm taking my 80% growth and running.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:$0. We will pay out of pocket and liquidate investments as needed.

This has me curious. Are you so wealthy that the tax savings aren't worth the added time and hassle? I don't clip coupons for this reason and I've always wondered how this scales up with greater wealth.

Im not impressed with the performamce of many of the college savingd plans out that as compared to what my portfolio returns. Haven't looked at the 529 in years...enlihgten me, how are the gains? We also have a few rental properties and one of those could get it done. Really why bother, i see a clear path already.

Well, for starters, the returns aren't taxed, so there's a 30% gain right there.

Long term cap is at 20%, but I'm really curious what the returns are. Whrn i checkes yrars ago, thry were miserable.

You can check online, but the returns are not great. Overall 5%. On the high risk option, around 12% (recently). Pretry much the 529Invest in an underpreformer and can have high fees.

A decent option for the masses, but if you all ready have a managed portfolio, you will do much better on your own, even when paying long term gains tax.

Ok, yea, i see that online now. Doesn't make sense for me at all. Im utilizing tax loss harvesting and have seen returns in the last 18 months upwards of 18%. On some individual tech stocks im played with (gambled) one in particluar has grown 32% in the last 3 months alone. With those tech stocks, i will say, I've dumped at the 1yr mark, so in some cases I'm taking my 80% growth and running.

The dow is up 23% in the last 18 months, and you could have gotten that return tax-free in a 529...

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:$0. We will pay out of pocket and liquidate investments as needed.

This has me curious. Are you so wealthy that the tax savings aren't worth the added time and hassle? I don't clip coupons for this reason and I've always wondered how this scales up with greater wealth.

Im not impressed with the performamce of many of the college savingd plans out that as compared to what my portfolio returns. Haven't looked at the 529 in years...enlihgten me, how are the gains? We also have a few rental properties and one of those could get it done. Really why bother, i see a clear path already.

Well, for starters, the returns aren't taxed, so there's a 30% gain right there.

Long term cap is at 20%, but I'm really curious what the returns are. Whrn i checkes yrars ago, thry were miserable.

You can check online, but the returns are not great. Overall 5%. On the high risk option, around 12% (recently). Pretry much the 529Invest in an underpreformer and can have high fees.

A decent option for the masses, but if you all ready have a managed portfolio, you will do much better on your own, even when paying long term gains tax.

Ok, yea, i see that online now. Doesn't make sense for me at all. Im utilizing tax loss harvesting and have seen returns in the last 18 months upwards of 18%. On some individual tech stocks im played with (gambled) one in particluar has grown 32% in the last 3 months alone. With those tech stocks, i will say, I've dumped at the 1yr mark, so in some cases I'm taking my 80% growth and running.

The dow is up 23% in the last 18 months, and you could have gotten that return tax-free in a 529...

As a holder of a 529, please do share which fund is getting 23%?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:$0. We will pay out of pocket and liquidate investments as needed.

This has me curious. Are you so wealthy that the tax savings aren't worth the added time and hassle? I don't clip coupons for this reason and I've always wondered how this scales up with greater wealth.

Im not impressed with the performamce of many of the college savingd plans out that as compared to what my portfolio returns. Haven't looked at the 529 in years...enlihgten me, how are the gains? We also have a few rental properties and one of those could get it done. Really why bother, i see a clear path already.

Well, for starters, the returns aren't taxed, so there's a 30% gain right there.

Long term cap is at 20%, but I'm really curious what the returns are. Whrn i checkes yrars ago, thry were miserable.

You can check online, but the returns are not great. Overall 5%. On the high risk option, around 12% (recently). Pretry much the 529Invest in an underpreformer and can have high fees.

A decent option for the masses, but if you all ready have a managed portfolio, you will do much better on your own, even when paying long term gains tax.

Ok, yea, i see that online now. Doesn't make sense for me at all. Im utilizing tax loss harvesting and have seen returns in the last 18 months upwards of 18%. On some individual tech stocks im played with (gambled) one in particluar has grown 32% in the last 3 months alone. With those tech stocks, i will say, I've dumped at the 1yr mark, so in some cases I'm taking my 80% growth and running.

The dow is up 23% in the last 18 months, and you could have gotten that return tax-free in a 529...

As a holder of a 529, please do share which fund is getting 23%?

https://www.virginia529.com/resources/performance/vsmi/

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:$0. We will pay out of pocket and liquidate investments as needed.

This has me curious. Are you so wealthy that the tax savings aren't worth the added time and hassle? I don't clip coupons for this reason and I've always wondered how this scales up with greater wealth.

Im not impressed with the performamce of many of the college savingd plans out that as compared to what my portfolio returns. Haven't looked at the 529 in years...enlihgten me, how are the gains? We also have a few rental properties and one of those could get it done. Really why bother, i see a clear path already.

Well, for starters, the returns aren't taxed, so there's a 30% gain right there.

Long term cap is at 20%, but I'm really curious what the returns are. Whrn i checkes yrars ago, thry were miserable.

You can check online, but the returns are not great. Overall 5%. On the high risk option, around 12% (recently). Pretry much the 529Invest in an underpreformer and can have high fees.

A decent option for the masses, but if you all ready have a managed portfolio, you will do much better on your own, even when paying long term gains tax.

Ok, yea, i see that online now. Doesn't make sense for me at all. Im utilizing tax loss harvesting and have seen returns in the last 18 months upwards of 18%. On some individual tech stocks im played with (gambled) one in particluar has grown 32% in the last 3 months alone. With those tech stocks, i will say, I've dumped at the 1yr mark, so in some cases I'm taking my 80% growth and running.

The dow is up 23% in the last 18 months, and you could have gotten that return tax-free in a 529...

As a holder of a 529, please do share which fund is getting 23%?

https://www.virginia529.com/resources/performance/vsmi/

So where is the 23%?

And BTW if that poster is tax loss harvesting, he/she is playing with millions and with tax loss harvesting a bump 2% this month or that month, compounds very quickly. I don't think a 529 is of much concern to that demographic.

I personally cannot risk being invested like someone who has millions, nor am I under ANY illusions at all that when my children graduate in 2025 and 2028 that we will be seeing 18% returns. I have my 529 diversified because the second Trump gets impeached or can't get his tax cuts through as promised, there will be a significant correction.

[Anonymous]

Anonymous wrote:$0. We will pay out of pocket and liquidate investments as needed.

Same here. We looked at 529 and our historic returns vs theirs was highe, even after factoring in 20% capital gains taxes. Years later, that still holds true, especially with this market run up. I use wealthfront and our returns have been incredible. At this point, our portfolio's growth has eclipsed our wage slave income.

[Anonymous]

0- kids will pay their way through college just like I did. I'll contribute to community college.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:$0. We will pay out of pocket and liquidate investments as needed.

This has me curious. Are you so wealthy that the tax savings aren't worth the added time and hassle? I don't clip coupons for this reason and I've always wondered how this scales up with greater wealth.

Im not impressed with the performamce of many of the college savingd plans out that as compared to what my portfolio returns. Haven't looked at the 529 in years...enlihgten me, how are the gains? We also have a few rental properties and one of those could get it done. Really why bother, i see a clear path already.

Well, for starters, the returns aren't taxed, so there's a 30% gain right there.

Long term cap is at 20%, but I'm really curious what the returns are. Whrn i checkes yrars ago, thry were miserable.

You can check online, but the returns are not great. Overall 5%. On the high risk option, around 12% (recently). Pretry much the 529Invest in an underpreformer and can have high fees.

A decent option for the masses, but if you all ready have a managed portfolio, you will do much better on your own, even when paying long term gains tax.

Ok, yea, i see that online now. Doesn't make sense for me at all. Im utilizing tax loss harvesting and have seen returns in the last 18 months upwards of 18%. On some individual tech stocks im played with (gambled) one in particluar has grown 32% in the last 3 months alone. With those tech stocks, i will say, I've dumped at the 1yr mark, so in some cases I'm taking my 80% growth and running.

The dow is up 23% in the last 18 months, and you could have gotten that return tax-free in a 529...

As a holder of a 529, please do share which fund is getting 23%?

https://www.virginia529.com/resources/performance/vsmi/

So where is the 23%?

And BTW if that poster is tax loss harvesting, he/she is playing with millions and with tax loss harvesting a bump 2% this month or that month, compounds very quickly. I don't think a 529 is of much concern to that demographic.

I personally cannot risk being invested like someone who has millions, nor am I under ANY illusions at all that when my children graduate in 2025 and 2028 that we will be seeing 18% returns. I have my 529 diversified because the second Trump gets impeached or can't get his tax cuts through as promised, there will be a significant correction.

The Dow is up 23% in the last 18 months, and the CRSP US Total Market Index that the Virginia 529 fund tracks is up 25% in the same time period (since 12/11/2015).

No one is claiming that any particular return is to be expected in the future from buying index funds. I do, however, expect a higher return than previous posters who are speculating on real estate or their stock market hunches, even without accounting for the (considerable) tax breaks a 529 gives (such as the person in this thread who managed to get an 18% return over the last 18 months, and still owes capital gains/dividend taxes).

Were my net worth north of $50M, you're right, the 529 is enough of a hassle that I might not bother. That said, people of much, much lower net worths (including myself) use tax loss harvesting.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:$0. We will pay out of pocket and liquidate investments as needed.

This has me curious. Are you so wealthy that the tax savings aren't worth the added time and hassle? I don't clip coupons for this reason and I've always wondered how this scales up with greater wealth.

Im not impressed with the performamce of many of the college savingd plans out that as compared to what my portfolio returns. Haven't looked at the 529 in years...enlihgten me, how are the gains? We also have a few rental properties and one of those could get it done. Really why bother, i see a clear path already.

Well, for starters, the returns aren't taxed, so there's a 30% gain right there.

Long term cap is at 20%, but I'm really curious what the returns are. Whrn i checkes yrars ago, thry were miserable.

You can check online, but the returns are not great. Overall 5%. On the high risk option, around 12% (recently). Pretry much the 529Invest in an underpreformer and can have high fees.

A decent option for the masses, but if you all ready have a managed portfolio, you will do much better on your own, even when paying long term gains tax.

Ok, yea, i see that online now. Doesn't make sense for me at all. Im utilizing tax loss harvesting and have seen returns in the last 18 months upwards of 18%. On some individual tech stocks im played with (gambled) one in particluar has grown 32% in the last 3 months alone. With those tech stocks, i will say, I've dumped at the 1yr mark, so in some cases I'm taking my 80% growth and running.

The dow is up 23% in the last 18 months, and you could have gotten that return tax-free in a 529...

As a holder of a 529, please do share which fund is getting 23%?

https://www.virginia529.com/resources/performance/vsmi/

So where is the 23%?

And BTW if that poster is tax loss harvesting, he/she is playing with millions and with tax loss harvesting a bump 2% this month or that month, compounds very quickly. I don't think a 529 is of much concern to that demographic.

I personally cannot risk being invested like someone who has millions, nor am I under ANY illusions at all that when my children graduate in 2025 and 2028 that we will be seeing 18% returns. I have my 529 diversified because the second Trump gets impeached or can't get his tax cuts through as promised, there will be a significant correction.

The Dow is up 23% in the last 18 months, and the CRSP US Total Market Index that the Virginia 529 fund tracks is up 25% in the same time period (since 12/11/2015).

No one is claiming that any particular return is to be expected in the future from buying index funds. I do, however, expect a higher return than previous posters who are speculating on real estate or their stock market hunches, even without accounting for the (considerable) tax breaks a 529 gives (such as the person in this thread who managed to get an 18% return over the last 18 months, and still owes capital gains/dividend taxes).

Were my net worth north of $50M, you're right, the 529 is enough of a hassle that I might not bother. That said, people of much, much lower net worths (including myself) use tax loss harvesting.

Count me as another who is not saving either. I have a few rentals (homes we purchased and then didn't sell when we moved) 2 are in Arlington purchased in early 2000s. Plan is to have the kids take out loans, move back in and take the exception and sell and pay off debt. There is enough equity to send them through the best medical school if they so choose. We have 7 years until our oldesr hits school and then another 4 until graduation. That's 11 more years of sitting on prime real estate space with high cash flow positive rent.

After reading all the debate here and comparing my portfolio (which has always been heavy tech stocks with my best performers individual stocks in the last 2 years) and over the course of 10 years my portfolio absolutely blows away the posted returns on 529, even after considering tax.