Reply to What do people ink of the VA prepaid tuition plan?

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[quote=Anonymous][quote=Anonymous]What makes me uneasy about the prepaid is the "payments plus reasonable/actual rate of return" if you go private or out of state.  If you look through the literature the rate of return for the past several years is basically zero. For that reason I am putting our money into the 529 investment accounts. I may be missing something, but I feel the market should do better.

My plan is to do 8k/kid/year for 9-10 years, then let it grow. If they need more than that our mortgage will be paid off around that point.

Something that is not widely publicized is that you can deduct 4k/account for each fund you invest in for each kid and each parent is separate, so you can deduct far more than 4k/kid/year.[/quote]

I bought the VA prepay tuition for both my son and daughter 12 years ago.   The price was around $32K each.  If I invested this amount in S&P 500 12 years ago, I don't think I can pay for the UVA tuition today.  If you look at S&P500 from 2000 to 2008, stock market did not go any way.  The reason was during the time.  If none of them goes to VA state school, I can always get all my money back.  [/quote]

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