Reply to Does this seem like sound advice for paying for college?

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[quote=Anonymous][quote=Anonymous]You need to look at what the cost of college is likely to be in 16 years, and how that compares to your mortgage payments.  College costs will increase substantially while your mortgage costs will stay the same so that may create a gap down the road.  The theory with a 529 is that the savings grow/compound.

And that assumes nothing happens (job losses, divorce, disability) which would affect your ability to help pay for college.

It would make me nervous, but we were able to do both (and currently have one in college).[/quote]
I think this raises some good points.  It's a good theory, but in reality a years worth of mortgage payments will barely pay for one college tuition now, let alone two.  Also, this assumes you're in the same house for the next 20 years, and while you may intend that now, who knows what will happen?  This is not to say that it's a bad plan, but you thould think about these considerations.

I am of the school that views having your primary residence free and clear is a good thing (regardless of the paying for college component).  I realize that many view this as penny wise and pound foolish, but I take risks with other investments - I prefer to be as conservative as possible with something that is more than an asset - it's also where my family lives.  So I'd try to pay off the house ASAP, but without shorting other investments and college savings.  We currently save $7200/year for college (1 kid, in kindergarten), plus some gifts from grandparents; we also pay an extra $275/month on our mortgage.  This balance works for us, but you just have to decide what works for you.  (And it truly does have to fit into your own risk tolerance is, regardless of the opinion of your financial wiz father.  His risk tolerance may be very different than yours, and might not fit your life.  It's OK to take other factors into consideration besides the absolute "correct" financial move, designed to yield the most profitable esults.)  [/quote]

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