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[quote=Anonymous][quote=Anonymous]We are trying to do a gut check on our 529/college savings rate.  We have a 6 yr old whose 529 has about $40K already.  We have a 0 yr old who does not yet have a 529.  Obviously we need to open that and start infusing it...

How much should we be contributing per month in order to try to have enough for each child to attend a private university for 4 yrs, based on the historic rate of return?

I am trying to research on this board as well but would appreciate helpful responses other than "this has been much discussed, search previous threads"  Just looking for thoughtful responses from anyone knowledgeable or in a similar situation.

[/quote]

Starting with an initial deposit of $5,000, if you put in $1,000 a month for 18 years and average 4 percent growth, you should end up with $325,000. THat will cover $80,000 a year (plus assume you will continue to contribute $12K a year while your kid is in college, instead of putting it in the 529). That would cover current private school tuition inflated at about 2-3 percent a year.

If you put in $500 a month you will wind up with $168,000.

If you only average 2% growth you will save $266,000, but an average of 6% growth will get you $400,000. [/quote]

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