How much to put into 529s?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Is it bad that I'm skeptical about 529s? It seems like the investment options are so limited and the fees can be kind of nuts. I wonder if the tax advantage is worth it.

If all your information about 529s comes from the single weirdo who yells "the fees are high and limited investement choices" on every 529 post, this is what you will believe. If you do even two minutes of googling and realize it's not 2005, you'll realize that one weirdo is not a reliable source.

Fortunately, it doesnt! I just want more control over my investments (and the fees associated with 529s seem a little much when you can buy stocks for free).

A stock I hold doubled in one week, and it will double or triple again. Can't buy it in 529 or any other ones.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Is it bad that I'm skeptical about 529s? It seems like the investment options are so limited and the fees can be kind of nuts. I wonder if the tax advantage is worth it.

If all your information about 529s comes from the single weirdo who yells "the fees are high and limited investement choices" on every 529 post, this is what you will believe. If you do even two minutes of googling and realize it's not 2005, you'll realize that one weirdo is not a reliable source.

Fortunately, it doesnt! I just want more control over my investments (and the fees associated with 529s seem a little much when you can buy stocks for free).

A stock I hold doubled in one week, and it will double or triple again. Can't buy it in 529 or any other ones.

Wow incredible so glad you found a magic stock.

[Anonymous]

invest the most you can afford, OP, anything not used for education can be used for down payment on your kids' first homes.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Zero. Horrible investment choices, high fees, bad customer service, and lots of rules.
High growth stocks, some funds because one kid is 13 and pay as needed.

What are you talking about? IN VA American funds whose fees are not bad and performance is great.

+1000
Best plan out there, choose your own investments, never do the "X years until college start" plan and you will not be disappointed

+2

We have Vanguard 529s and split between 500 index and total stock market. I just made a $30K tuition payment in early January and market growth has already covered $12,524 of it.

Everyone should do this while the kids are young. If you can't float when the market is down, then convert into something safer.

Re bad customer service: With Vanguard you can pay directly to college or request a check. Could not be easier.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Is the $400k your whole inheritance or is that just the intended (inherited) 529 funds?

If you’re inheriting $400k, I’d be concerned by front loading 529s, you’re effectively gifting your inheritance to your kids. In the event of a divorce, that money is gone to you. Why not just keep the bulk in your separate name? If you don’t commingle the funds, you can always use it for college but it’s yours otherwise if you divorce.

This seems bizarre to me. I would never treat an inheritance like this as though it’s not mine and my husband’s jointly. And it would still be going to the kids’ college fund anyway. What difference does it make? It’s eye opening that some people treat family finances this way, so glad my DH and I don’t.

My beloved grandmother, devoted to my grandfather for over fifty years, ended up marrying four more times once he passed and she hit the nursing home singles scene. It made for an almighty estate mess. I’ve heard worse stories of lonely old widowers marrying fertile, fun and forty.

The luxury of having funds outside of commingled marital accounts that can be safely set aside for children of the marriage is not to be taken lightly.