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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Do you feel like you need to spend ridiculous amounts of money on your kids like all the other UMC/Rich people? My circle is mostly these types, myself included. We grew up in divorced and/or low income households often where our parents made less than 50k and we all now make 300-400k in our early 30’s. We all find it crazy how people think they need to pay for expensive tutoring, private schools, travel teams, etc when we had none of that and turned out fine. [b]One of my friends just had a baby and said he doesn’t plan on saving for their college education.[/b][/quote]

Dumbdedumm. It’s so blue collar thinking to not value education. 
Does he think his kids will just be lucky and land in fortunate circumstances like he did? 400k isn’t enough to trust fund his kid, so what’s his plan? Or is that too UMC for him to consider?[/quote]

College is only like 50k per year or less in most cases. So you can just pay for it, like other expenses, without needing to "save" for it. I think it's crazy when I read about how "blue collar" it is not to save for it. It's not a big enough expense to require saving.  [/quote]

It's blue collar thinking to forego straightforward, tax preferred savings vehicles for expected expenses. 
[/quote]

There's no federal tax deduction[/quote]
Growth is tax free- that is a massive benefit
[quote]
 and generally no state tax deduction for people in the highest tax categories.[/quote]
that is just wrong
[quote] The only advantage is tax free growth.
[/quote] that can be 10s of thousands of dollars worth of growth
[quote] And 529s don't tend to have great growth performance
[/quote]
my 529 is in the same vanguard funds as my IRA with the same fee structure
[quote] so there's opportunity cost, and the risk of overfunding. [/quote]
then you roll it into a Roth IRA or keep it there and your grand kids have an extra 20 years of growth and college paid for from birth
[quote]I don't think funding a 529 is as straightforward for people earning a lot of money. Took a lump sum and funded 529s from the standpoint of risk management-- what if we lose everything type scenario. But as a matter of financial management, it can make a lot of sense for families to just pay for college each year without saving.  [/quote]
You sound like someone who is terrified of the market and that's fine, but compound growth is what sustains family wealth [/quote]

We did fund them and we are very heavy into the market.  But 529s are one of many financial products and they appear to be geared more at middle class people who need to save money to send their kids to college. Once you're at an income that you can easily just write a check for it, it's much less appealing. What I'm mainly reacting to is the concept that if you don't fund a 529, that means you have no intention to pay for your kid's college. I suspect many of not most people in the income level we are at are not overly concerned about 529s. College costs the same as private school; no one saves for over a decade to fund that. [/quote]

You need a financial advisor. For the very upper middle class and very rich, 529s have very little to do with paying for college and everything to do with tax free growth and passing money between generations. Virginia has an aggregate limit of 550k per student. Can you think of any other account where you can put in that much money and then get tax free growth or the ability to pass it to another family member without penalty? [/quote]

You're right on both counts. We are looking to get a financial advisor. And we are interested in using a 529 to give a tax free inheritance to our kids (but we are taking care of a couple financial goals this year before we work on that). My comments were coming at this from the standpoint that people's interest in 529 and their interest in funding college aren't necessarily related. [/quote]

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