Is $1000/mo in a 529 enough?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:NP here. I discuss finance issues with close friends. I don't get what's strange about that.

Oh my god were you people raised in barns? Not ok!

We make the same amount as OP and it would never in a million years occur to me to seek finance advice on this site. You really lack critical thinking skills, in addition to manners, OP.

So weird. It's a anon board and why wouldn't I discuss finances with my very close friends? They're my friends after all.

It's bad manners and it puts people in an awkward position. Some people may not be saving for college because they spend too much money...others may be relying on family money and may not need to save in 529 plans. It's kind of a no win situation discussing this with friends. What's to gain? Are you going to seriously start saving more or less because of what a friend saves or doesn't save? Do you also compare mortgage payments and brokerage accounts? You're really clueless if you think you should be sharing what you're contributing to a 529 plan. It's fine to complain about college costs or something very general, but not talk numbers. I'd maybe reconsider your approach of discussing with friends and even think back to these conversations and see if you can pick up on the awkwardness now that you've been called out on it. There's a good chance your friend was criticizing you for not saving enough only because you were dumb enough to bring it up to begin with!

Uh, if this happens then that person is not my friend. I think that's your problem. I don't consider casual associates friends. If you are my friend we can discuss anything. But maybe that's why I only have two.

Nope that's not it. I don't discuss family finances with anyone except my immediate family. How we pay for our home, vacations and expenses are simply NO one's business and I have nothing to gain by sharing this information.

No one cares what you do or think. OP asked a simple question and she probably got enough information to make a decision from the reasonable posters. No one expects any information of value from the obnoxious and frothing at the mouth posters, like yourself, because you are either a 16 yr old troll or a bitter old person waiting to jump on somebody.

Seems like she asked a question as a result of the conversation with her friend. My response is that she shouldn't be discussing finances with friends to begin with.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What's your HHI?

You're missing out on tax benefits putting that much in a 529.

At the very least, put it in two 529s (one in your name, one in your DH's). If you are eligible for a Roth, I would split the thousand as $330 in your 529, $330 in your husband's, and the balance split between two Roth IRAs. You can use Roth money to pay for college, and in the event your child doesn't end up needing it, you still have it for your retirement.

HHI is ~350k. we both max out 401(k) (spouse has a 9% match; I have none because I work in biglaw). In addition, we put away about $4000 in index funds. We also each backdoor the maximum into Roth IRA accounts.

We each put the minimum into the state-sponsored 529 for the write-off. The remainder goes into a 529 with Vanguard (fees are lower). What would be better for us to do?

I'm amazed that you are able to save $5K a month (and then some) on $350K. How do you manage that? Any tips?

Fwiw we make a little more and save a similar amount outside of retirement. I think it all comes down to housing. Our mortgage is around $3,500 and we don't have a car payment and only one car. Our house is small so was easy to furnish. We don't spend a lot dining out. We don't have a cleaning lady. We try and live off of one paycheck.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What's your HHI?

You're missing out on tax benefits putting that much in a 529.

At the very least, put it in two 529s (one in your name, one in your DH's). If you are eligible for a Roth, I would split the thousand as $330 in your 529, $330 in your husband's, and the balance split between two Roth IRAs. You can use Roth money to pay for college, and in the event your child doesn't end up needing it, you still have it for your retirement.

HHI is ~350k. we both max out 401(k) (spouse has a 9% match; I have none because I work in biglaw). In addition, we put away about $4000 in index funds. We also each backdoor the maximum into Roth IRA accounts.

We each put the minimum into the state-sponsored 529 for the write-off. The remainder goes into a 529 with Vanguard (fees are lower). What would be better for us to do?

I'm amazed that you are able to save $5K a month (and then some) on $350K. How do you manage that? Any tips?

Our mortgage is $2500 - we bought 3 years ago when HHI was about 250k, and even then we went cheaper than we could have (we got a place for just under 600k). No car payments and no other significant expenses. I divert almost all the money I can to various mutual fund accounts/savings accounts automatically so it's as if I never had the money to spend.

The responses to this thread are something else. Thanks for the handful of helpful responses (for the record there actually are a few people who think $1k/mo is insufficient). As for people worrying about me talking with a friend regarding finances, that person and I are very close friends and have been for over 20 years. We talk about this stuff all the time, but I'm happy to know that some of you think it's inappropriate for me to talk about these things. I will stop asap.

[Anonymous]

Oh please, most normal people could save 5k a month if they are making 350k! That is a ton of money.

[Anonymous]

There is a poster in here saving 1750 a month x 2 or 3. Is that sufficient?

[Anonymous]

$1k/mo is likely fine. You will likely end up with between 350-400k in 18 years assuming a reasonable rate of return. I wouldn't personally fund a mid-tier private, but that's just me. GW, American, Georgetown, Catholic, etc. are largely a waste of money, IMHO. Our plan is for DD to go to one of the VA state schools unless she either A) shows exceptional aptitude in something that requires a specific school or B) gets into an ivy. In those cases we'll fund it and make it work, but otherwise for a run of the mill business, engineering or liberal arts pre-law type gig she will do just fine in VA.

Not hard to save $5k a month on that HHI either. 400k HHI, 15 year $450k mortgage with 2 Hondas paid for in cash sitting in the driveway. Easy to save that much or more when you don't overspend on house and cars.

[Anonymous]

Anonymous wrote:GW, American, Georgetown, Catholic, etc. are largely a waste of money, IMHO. Our plan is for DD to go to one of the VA state schools unless she either A) shows exceptional aptitude in something that requires a specific school or B) gets into an ivy. In those cases we'll fund it and make it work, but otherwise for a run of the mill business, engineering or liberal arts pre-law type gig she will do just fine in VA.

OP here. I agree with this 100%, although I'd probably expand a bit outside the ivies (and not sure I agree on Georgetown). I think if I am told in 16 years that our kid got into GW or Rutgers or something, it's time to have a conversation.

[Anonymous]

Anonymous wrote:$1k/mo is likely fine. You will likely end up with between 350-400k in 18 years assuming a reasonable rate of return. I wouldn't personally fund a mid-tier private, but that's just me. GW, American, Georgetown, Catholic, etc. are largely a waste of money, IMHO. Our plan is for DD to go to one of the VA state schools unless she either A) shows exceptional aptitude in something that requires a specific school or B) gets into an ivy. In those cases we'll fund it and make it work, but otherwise for a run of the mill business, engineering or liberal arts pre-law type gig she will do just fine in VA.

Not hard to save $5k a month on that HHI either. 400k HHI, 15 year $450k mortgage with 2 Hondas paid for in cash sitting in the driveway. Easy to save that much or more when you don't overspend on house and cars.

It all comes down to the house, cars and childcare. If you can limit these expenses you'll have plenty of money to save.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:NP here. I discuss finance issues with close friends. I don't get what's strange about that.

Oh my god were you people raised in barns? Not ok!

We make the same amount as OP and it would never in a million years occur to me to seek finance advice on this site. You really lack critical thinking skills, in addition to manners, OP.

So weird. It's a anon board and why wouldn't I discuss finances with my very close friends? They're my friends after all.

It's bad manners and it puts people in an awkward position. Some people may not be saving for college because they spend too much money...others may be relying on family money and may not need to save in 529 plans. It's kind of a no win situation discussing this with friends. What's to gain? Are you going to seriously start saving more or less because of what a friend saves or doesn't save? Do you also compare mortgage payments and brokerage accounts? You're really clueless if you think you should be sharing what you're contributing to a 529 plan. It's fine to complain about college costs or something very general, but not talk numbers. I'd maybe reconsider your approach of discussing with friends and even think back to these conversations and see if you can pick up on the awkwardness now that you've been called out on it. There's a good chance your friend was criticizing you for not saving enough only because you were dumb enough to bring it up to begin with!

Uh, if this happens then that person is not my friend. I think that's your problem. I don't consider casual associates friends. If you are my friend we can discuss anything. But maybe that's why I only have two.

Nope that's not it. I don't discuss family finances with anyone except my immediate family. How we pay for our home, vacations and expenses are simply NO one's business and I have nothing to gain by sharing this information.

No one cares what you do or think. OP asked a simple question and she probably got enough information to make a decision from the reasonable posters. No one expects any information of value from the obnoxious and frothing at the mouth posters, like yourself, because you are either a 16 yr old troll or a bitter old person waiting to jump on somebody.

Seems like she asked a question as a result of the conversation with her friend. My response is that she shouldn't be discussing finances with friends to begin with.

Who cares what she discusses with her friends? She talks about finances and you don't, big deal. I wonder how old OP and you are though. I've noticed that younger people are generally more open with talking about pretty much anything, including their finances.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:NP here. I discuss finance issues with close friends. I don't get what's strange about that.

Oh my god were you people raised in barns? Not ok!

We make the same amount as OP and it would never in a million years occur to me to seek finance advice on this site. You really lack critical thinking skills, in addition to manners, OP.

And herein lies a big difference. If you were raised in old money, you don't discuss finances. People who weren't raised with money but have a decent income now tend to be more open with it.

Dumb old stick up the butt fake rules.

[Anonymous]

Anonymous wrote:

Seems like she asked a question as a result of the conversation with her friend. My response is that she shouldn't be discussing finances with friends to begin with.

And you need to get out of this mentality which is just as disturbing as a stepford wife group-think. Finances, particularly her finances, are hers to discuss as she wills. Especially with individuals and friends she's trusted for over two decades.

“A woman’s preaching is like a dog’s walking on his hind legs. It is not done well; but you are surprised to find it done at all.” - Samuel Johnson, 1971

That goes beyond religion to politics and to business ventures. Get your head out of your ass and own your portfolio.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:NP here. I discuss finance issues with close friends. I don't get what's strange about that.

Oh my god were you people raised in barns? Not ok!

We make the same amount as OP and it would never in a million years occur to me to seek finance advice on this site. You really lack critical thinking skills, in addition to manners, OP.

And herein lies a big difference. If you were raised in old money, you don't discuss finances. People who weren't raised with money but have a decent income now tend to be more open with it.

Dumb old stick up the butt fake rules.

+1. Most of my friends grew up solidly upper middle class, with a few from "old money" families, for the class obsessives, and they are fairly open with discussing finances. Maybe that's just us though, I don't know.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Seems like she asked a question as a result of the conversation with her friend. My response is that she shouldn't be discussing finances with friends to begin with.

And you need to get out of this mentality which is just as disturbing as a stepford wife group-think. Finances, particularly her finances, are hers to discuss as she wills. Especially with individuals and friends she's trusted for over two decades.

“A woman’s preaching is like a dog’s walking on his hind legs. It is not done well; but you are surprised to find it done at all.” - Samuel Johnson, 1971

That goes beyond religion to politics and to business ventures. Get your head out of your ass and own your portfolio.

Not sure what this has to do with being a woman. My husband also abstains from discussing finances with his friends. We may discuss certain investments or mention rental properties but NEVER mention numbers, which is what OP was doing.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Seems like she asked a question as a result of the conversation with her friend. My response is that she shouldn't be discussing finances with friends to begin with.

And you need to get out of this mentality which is just as disturbing as a stepford wife group-think. Finances, particularly her finances, are hers to discuss as she wills. Especially with individuals and friends she's trusted for over two decades.

“A woman’s preaching is like a dog’s walking on his hind legs. It is not done well; but you are surprised to find it done at all.” - Samuel Johnson, 1971

That goes beyond religion to politics and to business ventures. Get your head out of your ass and own your portfolio.

Not sure what this has to do with being a woman. My husband also abstains from discussing finances with his friends. We may discuss certain investments or mention rental properties but NEVER mention numbers, which is what OP was doing.

Wow you are so superior because you "NEVER mention numbers." Do you want a cookie?

[Anonymous]

Anonymous wrote:$1k/mo is likely fine. You will likely end up with between 350-400k in 18 years assuming a reasonable rate of return. I wouldn't personally fund a mid-tier private, but that's just me. GW, American, Georgetown, Catholic, etc. are largely a waste of money, IMHO. Our plan is for DD to go to one of the VA state schools unless she either A) shows exceptional aptitude in something that requires a specific school or B) gets into an ivy. In those cases we'll fund it and make it work, but otherwise for a run of the mill business, engineering or liberal arts pre-law type gig she will do just fine in VA.

Not hard to save $5k a month on that HHI either. 400k HHI, 15 year $450k mortgage with 2 Hondas paid for in cash sitting in the driveway. Easy to save that much or more when you don't overspend on house and cars.

+1