Reply to How much do you put into your kids' 529 (college fund) annually?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]We each do $4000 a year in 529s to get the max state income tax deduction. So that's $8000 a year. 1 child currently. If we decide to stay in VA we may start doing the prepaid plans, but we're strongly considering moving in the next 2 or 3 years, so are waiting on that. [/quote]

Everybody should consider a PREPAID tuition plan if they can afford $1,100/month for 5 years - it is so worth it and I think a better deal than just a plain 529 savings account (and you still get the miniscule state tax write-off, like $200 to $400/year savings).  15 years from now, tuition alone could easily be $200,000 to $250,000 - that's a great return on a $55,000 investment (for a child age 5 or under).  And the benefit can be applied to ANY school if your child goes out of state.
[/quote]

MAybe, but I think the trend of double-digit tuition increases has come to an end.

U.VA's tuition increase this year is 4%. I'm beating 4% in the market.

Granted, this is a reversal of fortune relative to recent years, but I think schools are under tremendous pressure to reprice.[/quote]

If you start with about $45,000 in your account, and if you can beat the rate of tuition % increases every year, then okay.[/quote]

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