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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]2 kids under 4.  Fully funded 4 years of college prepaid.  30 in each child's 529.  HHI 275. We put in 10 to 15 K in each every year and will until each is at least 100K each. [/quote]

Just curious, why so much?  Does prepaid not cover room and board?

Our strategy was to have $50k in each 529 and then shift that money to another saving vehicle that could be used for college or retirement (this was our financial advisers suggestion).  We expect to have no mortgage when kids are in school and an increased income so paying a monthly tuition bill is likely possible.  [/quote]

Not that PP--but no, prepaid is just tuition.
Might be assuming that one or both kids ends up going private (or out of state), needing more than 4 years to graduate, or attending grad school. [/quote]

I am the pp.  We are saving that much because, as another said, prepaid only covers tuition.  Also, the sooner you buy in, the cheaper it is--you lock in the tuition rate (you pay the tuition) at the time you buy.  So we bought it all rather than financing over time and watching the total price go up.  We figure that expenses with the kids will go up with possible private school, after school activities, camps, etc. We also want to do more big travel later on and that is pricey.  With little kids we aren't really doing international travel other than the caribbean and canada and cruising.  Another reason is that DH and I both have JDs and we each did one degree at a public school and one at a private.  And our JDs were not paid for by parents.  We believe that public colleges are an excellent option--particularly in Virginia where we prepaid.  However, if a child is accepted to a private that is worth the money (whole other topic right there) or that fits some specific need, then we want to have some money set aside for that possibility.  If one or both goes private, the prepaid account basically becomes a bank account--the money is available for use at the private but obviously the savings rate is not what we would have received if we had put it in a decent 529 (or so they say).  Also, we are just very big into feeling financially secure.  We had no debt other than our house.  We buy cars in cash, we are saving for a major renovation and will not get a line of credit to do it or otherwise finance it.  We are just generally risk averse.  FWIW, my family is the same in many ways and they are a good model and are quite well to do.  OTOH, DHs family has been much more "new rich" in their behaviors and are facing a very tight retirement.  They have been a model of what not do. [/quote]

I'm the PP who asked about pre-paid.  Thanks for the response.  We are in VA, and did talk about pre-paid, but DH and I both went to state schools and wanted our kids to have the choice to go out of state and thought a 529 was the better choice for this.  But your response makes me think!

Has anyone rolled 529 money into the pre-paid plan?  I understand you can do this in at least some states.  Not sure about VA, though.[/quote]

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