If your HHI is between 200-300k, how much will you have saved for college

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Our children are young so we still have time to save more. We set it and forget it with college savings. At last look we had $60k in the 529 and $40k in iBonds and another $22k in a Roth IRA all earmarked for college tuition. So that’s $122k and our oldest will start college in 2032. We are on track to provide in-state tuition at a public university for our 4 children (2 bio, 2 adopted). We understand room and board will be subsidized by a campus job, ideally residence life as an RA and a small amount of student loans if needed. We feel comfortable about providing our children more than what we had from our families when we started college even though it will be less than enough to cover full tuition, fees, room, board and incidentals. Hopefully at least one has a scholarship in their future.

Why does it matter if 2 kids were adopted? How does that affect college savings?

Because there are provisions for education for our 2 adopted children provided by a 3rd party, not us. We still save for them and know there will be additional funds available for them because of their adoptive status. These resources are not available to our bio children.

So, basically they adopted older kids or sibling group and kids who were in foster care get free state college, but that's assuming that's where they want to go and this poster treats them all the same.

[Anonymous]

I have zero intention of paying for private university. I do think we’ll be able to pay for in state tuition for two kids between savings and cash flow. We’re still paying for our own undergrad and law schools. I am hopeful to save about 100k per kid. Grad school will be on them as will any ridiculous private school costs, but I’ll do my best to steer them to state school. In my opinion, it’s just not worth the cost

[Anonymous]

Anonymous wrote:I have zero intention of paying for private university. I do think we’ll be able to pay for in state tuition for two kids between savings and cash flow. We’re still paying for our own undergrad and law schools. I am hopeful to save about 100k per kid. Grad school will be on them as will any ridiculous private school costs, but I’ll do my best to steer them to state school. In my opinion, it’s just not worth the cost

Nephew just graduated from VCU - state school in VA. 25k a year for tuition and room and board. It’s going to be a lot more than 100k for 4 years if your kids are young. Plan on cash flowing more than you think you will.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I have zero intention of paying for private university. I do think we’ll be able to pay for in state tuition for two kids between savings and cash flow. We’re still paying for our own undergrad and law schools. I am hopeful to save about 100k per kid. Grad school will be on them as will any ridiculous private school costs, but I’ll do my best to steer them to state school. In my opinion, it’s just not worth the cost

Nephew just graduated from VCU - state school in VA. 25k a year for tuition and room and board. It’s going to be a lot more than 100k for 4 years if your kids are young. Plan on cash flowing more than you think you will.

Thanks, but my kids aren’t that young. Cash flowing 20k per year of school won’t be a burden

[Anonymous]

Anonymous wrote:

Anonymous wrote:200k HHI. 1 child about to turn 8. Currently 250k in 529. We started around 6 months old, automatic monthly contributions and past few years have increased to $2200 month. All of this from passive income from investment properties. We also throw in extra money when we have it.

Goal 550k to cover college. Any extra money left over for further education if interested - grad/med/law. Left over after that to grandkids.

We bought a place in gentrifying neighborhood in DC so mortgage is low, drive used car, and don’t spend money on stuff. We max retirement and then spend money on travel and entertainment because experiences is more important to us.

The passive income really helps us with college savings. If we did not have that, then we would budget more and cut back on travel and entertainment.

I hope you won't mind a question, but I need help figuring out how to get to such a place. With an 8-year-old you're probably early 40s, have a $200K HHI and a house in DC, are putting away $26K a year in a 529 and probably a similar amount in retirement. With that income and those expenses, how did you acquire investment properties? Sounds like a game I need to get into!

PP here. Start early, save, buy, and hold with real estate. I started this way before having a family. First job in PA, got small townhouse with small down payment. I lived below my means and was a saver. Then I bought a bigger place with money saved for down payment and rented out the 1st place.

Then moved to DC. Rented out 2 places in PA above. Bought a rowhouse in neighborhood that was just starting to gentrify. I had money for down payment. I was single in my 30’s and had 2 roommates who paid my mortgage. With no mortgage, I was able to save money. Shortly before getting married late 30’s, bought another house down the block which we renovated and living here today. Renting 1st DC house out too. It was much easier to save when you are making 6 figures and single. Now late 40’s with 1 kid.

The 26k a year in 529 isn’t coming out of our salary. It’s from the rentals. When DC graduates high school, all the rental properties will be paid off and generating even more income. Theoretically, if we wanted to then, we could cash flow all of the college tuition with passive income. But that’s not a smart financial move with the power of compounding and tax free growth in the 529. If you invest early and a large amount, your money will grow much more and that’s less net money coming out of your pocket for college.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:200k HHI. 1 child about to turn 8. Currently 250k in 529. We started around 6 months old, automatic monthly contributions and past few years have increased to $2200 month. All of this from passive income from investment properties. We also throw in extra money when we have it.

Goal 550k to cover college. Any extra money left over for further education if interested - grad/med/law. Left over after that to grandkids.

We bought a place in gentrifying neighborhood in DC so mortgage is low, drive used car, and don’t spend money on stuff. We max retirement and then spend money on travel and entertainment because experiences is more important to us.

The passive income really helps us with college savings. If we did not have that, then we would budget more and cut back on travel and entertainment.

I hope you won't mind a question, but I need help figuring out how to get to such a place. With an 8-year-old you're probably early 40s, have a $200K HHI and a house in DC, are putting away $26K a year in a 529 and probably a similar amount in retirement. With that income and those expenses, how did you acquire investment properties? Sounds like a game I need to get into!

PP here. Start early, save, buy, and hold with real estate. I started this way before having a family. First job in PA, got small townhouse with small down payment. I lived below my means and was a saver. Then I bought a bigger place with money saved for down payment and rented out the 1st place.

Then moved to DC. Rented out 2 places in PA above. Bought a rowhouse in neighborhood that was just starting to gentrify. I had money for down payment. I was single in my 30’s and had 2 roommates who paid my mortgage. With no mortgage, I was able to save money. Shortly before getting married late 30’s, bought another house down the block which we renovated and living here today. Renting 1st DC house out too. It was much easier to save when you are making 6 figures and single. Now late 40’s with 1 kid.

The 26k a year in 529 isn’t coming out of our salary. It’s from the rentals. When DC graduates high school, all the rental properties will be paid off and generating even more income. Theoretically, if we wanted to then, we could cash flow all of the college tuition with passive income. But that’s not a smart financial move with the power of compounding and tax free growth in the 529. If you invest early and a large amount, your money will grow much more and that’s less net money coming out of your pocket for college.

This. If you have the money to save, why wouldn’t you put it in early in 529 instead of cash flowing it during college. Compounding is powerful and so is tax free withdrawal on that money made. There is no other more powerful growth vehicle than 529. It’s basically a Roth but there is no limit in the amount you can contribute each year.

[Anonymous]

We just passed the 200k mark about a year ago. We've only ever put a couple of lump sum gifts in when the kids were young (maybe 3 or 4). Between what that's grown to and what MIL has in the 529s she started for them, they are sitting around 75k as 5th and 6th graders. We don't have money to contribute every month due to some expensive therapy bills we're currently paying for one kid so we'll just have to pay what we can when we get there and let them take loans for the rest.

[Anonymous]

Anonymous wrote:I have zero intention of paying for private university. I do think we’ll be able to pay for in state tuition for two kids between savings and cash flow. We’re still paying for our own undergrad and law schools. I am hopeful to save about 100k per kid. Grad school will be on them as will any ridiculous private school costs, but I’ll do my best to steer them to state school. In my opinion, it’s just not worth the cost

That's the way to do it. A private college might help get you your first interviews (presuming you pick a hirable major) but after that, nobody truly cares where you went to college. Post-grad certifications become more relevant.

[Anonymous]

Anonymous wrote:

Anonymous wrote:200k HHI. 1 child about to turn 8. Currently 250k in 529. We started around 6 months old, automatic monthly contributions and past few years have increased to $2200 month. All of this from passive income from investment properties. We also throw in extra money when we have it.

Goal 550k to cover college. Any extra money left over for further education if interested - grad/med/law. Left over after that to grandkids.

We bought a place in gentrifying neighborhood in DC so mortgage is low, drive used car, and don’t spend money on stuff. We max retirement and then spend money on travel and entertainment because experiences is more important to us.

The passive income really helps us with college savings. If we did not have that, then we would budget more and cut back on travel and entertainment.

Good for you and your child but the fact that school might cost this much is just insane and shows how broken things are

At what point does the system finally implode? We got to be near the breaking point where the costs are truly not justified or doable.

[Anonymous]

Anonymous wrote:Middle school jr has $215k, preschooler has $80k. Contributing $1000-$1250 per month per kid since birth.

Amazing that you can swing 1k/mo per kid. That's just so far outside of what we can do.

[Anonymous]

Our HHI is $275K. We have a 1.5 yo and have been saving $500/month in a 529 since his birth. We plan on increasing it once we're no longer spending so much on his childcare.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Middle school jr has $215k, preschooler has $80k. Contributing $1000-$1250 per month per kid since birth.

Amazing that you can swing 1k/mo per kid. That's just so far outside of what we can do.

We just started earning about 250 and are contributing at that rate. Unfortunately, it means each kid will probably have about 100k when the time comes - so about three semesters at a private, 4 at an OOS public.

[Anonymous]

Anonymous wrote:I have zero intention of paying for private university. I do think we’ll be able to pay for in state tuition for two kids between savings and cash flow. We’re still paying for our own undergrad and law schools. I am hopeful to save about 100k per kid. Grad school will be on them as will any ridiculous private school costs, but I’ll do my best to steer them to state school. In my opinion, it’s just not worth the cost

+1. I feel the same way regarding private and OOS schools, just not worth the money at our income level. We currently save $500 per month per child. We have $35K for the oldest (5) and $22K saved for the youngest (turning 4).

[Anonymous]

We put in lump sums of $25k for each kid when they were born. At 6% return thats $63k in 18 years.we will add more along the way to fet them to about $120k each kid.

[Anonymous]

We have $500k for two HS kids. I am an immigrant, studied in Europe and did not have any student loans. I want to extend the same advantage to my kids.