Reply to 529 contribution planning question

Forum Index » Money and Finances

Reply to "529 contribution planning question"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]Need input from finance gurus or from parents who have been through this already..

We have 2 kid - 12 & 9 in ES.  No clue where they end up collegewise. We are in VA.   We have not been very diligent with contributions (about $10K each at this point).  I was wondering if the following action plan makes sense..

Contribute 2 semesters worth of pre-paid for each child - $ 29K (approx).  DH/DW buy a semester each for each kid so we get 16K annual deduction for state tax (4K*2children*2taxpayers)
Keep contributing each year (4K/child) so we can continue to fund the accounts (6 more years for the older one and 9 for younger) - Expect this to be enough to pay for 2 more years
Pay out of current income for the 4th year of college.
Pay out of current income for any private college differential.

Does the above approach make sense given all the uncertainties - Not knowing which college they will go to, stock market performance, job status in the future, etc.  Is the prepaid plan a good hedge against market non-performance?  How bad is the return if we decide to go elsewhere for college?
[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics