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[quote=Anonymous][quote=Anonymous]Any advice for someone with  a ten year old and no college savings so far? It has not been possible, but our situation  and HHI have recently changed for the better, and we need to start saving. Is a 529 the best vehicle at this point? Seems like maybe not...[/quote]

I still think putting money into a 529 would be good in your scenario, given the likely state tax break and the ability for the money to grow tax free. If I were you, I would aim to have four years of in state tuition saved. And maybe four years of room and board on top of that if you can swing it. Figure out how much your need to save per year, earning a conservative 4%, and then save that amount. And he sure to start talking to your child to set expectations. You can explain that if he or she decides on a private college, you will provide only what you would spend on an instate public college and he or she would have to make up the difference with loans, scholarships, grants, etc. I would also start talking about the effects of high student loan debt on other life goals. And have an offer to gift him or her the money saved for grad school of he or she gets and chooses a fullride somewhere.

We have two kids and live in NYC. We are on track to save half of an in state tuition plus r&b and fees for each boy. Hopefully, we will be able to benefit from our state's Excelsior Scholarship(I think that's the name) by maxing out pretax retirement so that we can reduce our AGI to under $125k and quality for the scholarship. We're going to give them the same talk as I suggested for you when the time comes (they're only 5 and 7 years old).

Do you have a lot saved for retirement? If yes, maybe consider tapping into wOrth IRA savings to pay for school?[/quote]

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