How much more to put into 529?
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Anonymous
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I currently have 2 kids, with 3 years of pre-paid Maryland state tuition covered for each. The kids are ages 2 and 5. I have $20,000 total invested in a 529 college investment plan. How much more do I need to add to the 529 plan to be able to fully cover costs before they attend? This is assuming they go in-state. If they want to go private or out of state they will need to make up the difference on their own.
I would like to have the option of retiring in my mid-fifties without having to worry about college costs |
Anonymous
| I am assuming that you've already run any of the multitude of online calculators that help you ascertain this number? So, what did the online calculator tell you? |
Anonymous
| Don't over invest in 529s. Use another instrument to save if you want save more. |
Anonymous
| Why only 3 years of prepaid? Maybe you could do a full four years? I assume $10K each will not begin to cover the 4th year at even a state school, especially 13 and 16 years from now. |
Anonymous
| Op here:. Online calculator is saying $80,000 more to cover all costs. I'm wondering if maybe I put another $30,000 in the accounts and then fund the remaining with outside sources....I don't want to overfund the 529s. |
Anonymous
| Op again.. I thought about not doing the additional 4th year pre-paid to allow for some flexibility from best case scenario (scholarships) to worst case (kid doesn't go to college or vocational program) |
Anonymous
I must be missing something... I am not understanding your logic. But you want to put additional money in the Investment Plan? |
Anonymous
If your kid gets scholarships you can withdraw the equivalent amount of money from the 529 without penalties (I think that's the case, look it up). |