if money were limitless + 529s question

[Anonymous]

We have a lot in 529s. If you had limitless money, how much would you put in before you stopped? We prob don't have enough for full expenses if the kids went out of state and/or to grad school, but each has about $225k. At what point would you stop if money wasn't an issue?

[Anonymous]

Right about now. 225K is a good number.

[Anonymous]

How old are the kids?

[Anonymous]

I don't know how useful our targets are for you since our children are barely into elementary school and I expect the numbers may shift as the kids get older and we see how the trends in college costs develop, but our general plan is to put in about 80% of in-state college costs. Barring financial catastrophe, we expect to have enough between annual income and general savings/investments to cover whatever else is needed.

[Anonymous]

We have 220k for an 8 year old

Still contributing because of the tax savings. If he doesn't need it we will transfer to grandkids. Tax free growth so we are making the most of it.

[Anonymous]

We have been debating this issue. We have $240k for two (7 & 10) and I was thinking of stopping at $300k total and putting the rest in a taxable investment account to hedge our bets a little bit. I don't want to have too much in a 529. The calculator I used indicated that it would cover one private and one public but I'm not sure about the quality of the calculator.

[Anonymous]

We have 3 kids and have about $200,000 in each of their accounts. My only suggestion is that you have them invested aggressively since they will likely not be touched for 10+ years.

[Anonymous]

You may already know, but the account is maxed at $350k

[Anonymous]

Anonymous wrote:You may already know, but the account is maxed at $350k

Exactly. I am not sure what the point of this thread is when 529s are capped and you'll have to eat penalties for any amount over the cap.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You may already know, but the account is maxed at $350k

Exactly. I am not sure what the point of this thread is when 529s are capped and you'll have to eat penalties for any amount over the cap.

The VA cap is 350K. That is when you must stop contributions. The account balance can grow beyond that amount and there are no penalties.

My rough model has the balance at around 500K when the kid gets to college. We use 400k of that for two degrees, and let the rest grow interest free for 30 years for his kids.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You may already know, but the account is maxed at $350k

Exactly. I am not sure what the point of this thread is when 529s are capped and you'll have to eat penalties for any amount over the cap.

Any amount you *contribute* over 350k. There's a difference.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You may already know, but the account is maxed at $350k

Exactly. I am not sure what the point of this thread is when 529s are capped and you'll have to eat penalties for any amount over the cap.

The VA cap is 350K. That is when you must stop contributions. The account balance can grow beyond that amount and there are no penalties.

My rough model has the balance at around 500K when the kid gets to college. We use 400k of that for two degrees, and let the rest grow interest free for 30 years for his kids.

Ok, this is helpful.

[Anonymous]

If money is limitless you just pay as you go.

[Anonymous]

Anonymous wrote:If money is limitless you just pay as you go.

Right.

Nobody cares about tax free growth. I am sure that the limitless money was originally made with poor investment decisions.

[Anonymous]

Anonymous wrote:

Anonymous wrote:If money is limitless you just pay as you go.

Right.

Nobody cares about tax free growth. I am sure that the limitless money was originally made with poor investment decisions.

Makes no sense. I'm wealthy but still frugal.