Rich people - how much in 529?

[Anonymous]

Anonymous wrote:

Anonymous wrote:We have 500k for each kid- an 8 and 9 year old.

How? if you max funded to the gift tax limit in 2017 that would have been $190k and would be worth $350k today . Did you additionally fund in 2023 and beyond?

This closely tracks our 529's performance for an 8 year old as well. We max funded in 2017, and I don't believe we added anything else. We are 100% in a fund that primarily tracks the Nasdaq and the value is $510-520k now.

[Anonymous]

TAX THE RICH

[Anonymous]

We have about 70k total between two kids under 5. We put in 10k a year to get the full MD state deduction. We cash flow a nanny and private school so expect we can cash flow college tuition as needed too.

[Anonymous]

Anonymous wrote:TAX THE RICH

In fairness to this comment, all of the tax advantaged accounts have basically become tax shelters for wealthy people so the sentiment is understandable.

[Anonymous]

Anonymous wrote:TAX THE RICH

It is true that the 529 is a tremendous vehicle for creating generational wealth with no tax consequences. Even the fact that it makes higher education doable with no loans is a separator between the wealthy and those who will struggle financially. Of course, the value of higher education going forward is something else being debated.
The estate tax has become a joke at its current level of $28 million for married couples.
The never ending income-tax cuts have blown a huge hole in the budget, expand at the debt, and in my opinion, have driven way too much wealth disparity in this country.
Our health system is amazing, but only if you have amazing insurance.
So back to the 529: Yes, it’s amazing, but only if you have the disposable income to fund it.
As somebody who has sent to children to expensive private schools and funded a 529 and is on track for a well funded retirement I can agree, yeah, tax the rich. But this country is a MAGA mess. It’s not happening.

[Anonymous]

Anonymous wrote:Zero. We sell stocks instead. 529s don't allow the selection of individual stocks, so we preferred to just invest more in our brokerage accounts. It turned out much better for us.

Tax free growth is hard to beat but I guess if you are a stock picker that can beat the S&P by 25% over 15-20 years...

[Anonymous]

Anonymous wrote:We put $5k or so year away per kid since they were born, with a couple years when grandparents added $1k as well (birth year, first communion year, maybe 1 more). Oldest is a senior and has almost $300k, which is perfect because he got in ED to a school that costs $80k/year and got no merit. We have cash flowed private k-12.

Younger is a freshman and is on similar pace.

Wow, that is some pretty good returns for a 529! Or did you choose another, more aggressive investment vehicle?

[Anonymous]

Have a 6 and 3 year old and have about 300k saved in 529s for them so far. Thinking we need about 400k each (800k total) when they turn 18. We wanted to front load it in case we decide to downshift careers before they turn 18.

[Anonymous]

Anonymous wrote:Maryland gives you like 5k per person state tax break so for a married couple 10k off state taxes and Maryland has done nothing but raise the hell out of taxes so if you are in md it’s worth it to contribute to get that state tax break.

Incorrect. 2500/yr per account.

[Anonymous]

We have older kids and the total is about 250K each. The remainder will be paid from brokerage accounts.

[Anonymous]

Kids are 6, 3, and 1 and each has almost 100k in 529. We pay for private school for the older two out of pocket, not 529. We hadn’t planned on private k-12 but now here we are so we are re-evaluating how to fund 529s.

We are not DCUM rich but we are normal people rich (HHI $350 and I stay home).

[Anonymous]

Anonymous wrote:
We are not DCUM rich but we are normal people rich (HHI $350 and I stay home).

Nothing normal about that. Not begrudging you for having that much saved for kids that young either. But that is not close to 'normal'.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We put $5k or so year away per kid since they were born, with a couple years when grandparents added $1k as well (birth year, first communion year, maybe 1 more). Oldest is a senior and has almost $300k, which is perfect because he got in ED to a school that costs $80k/year and got no merit. We have cash flowed private k-12.

Younger is a freshman and is on similar pace.

Wow, that is some pretty good returns for a 529! Or did you choose another, more aggressive investment vehicle?

529, managed by our wealth manager who has made adjustments to it over the year. To be fair, we started end of 2008, so got lucky on the timing of the market right off the bat. And DH reminded me we went to $7k/year the last 5 or so years.

[Anonymous]

Anonymous wrote:Posting here bc y’all are loaded. How much are you putting in your private school kids’ 529? What’s the goal?

Goal is at least $95-$100K per year per kid that is what college costs at private college older kid is at now

[Anonymous]

Anonymous wrote:

Anonymous wrote:Posting here bc y’all are loaded. How much are you putting in your private school kids’ 529? What’s the goal?

Goal is at least $95-$100K per year per kid that is what college costs at private college older kid is at now

so to clarify - $400K for each kid yes that much