Pay off the student loan. Zero reason to have it.
Where are your Roths?
Isn't Hysa for very limited use? We inherited one and it was more pain than it was worth.
Up the 529s a little and continue.
It's time to start investing in regular investment account. You don't want all you money is special accounts with rules and fees.
Once you get the investments to long term cg, the taxes are not too bad if you have to use the money.

Isn't a 25 to 30% savings rate reasonable?

Your current level of savings are perfectly reasonable given that you only recently doubled your income, but it definitely seems like you should have a lot more available to allocate toward investments/savings on your current income.

Do you have other major debts/private school tuitions or other significant expenses you’re not mentioning?

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Early 40s family with two elementary school kids making an HHI of $300 to $350k (3 years ago we were at 150k). We are saving reasonably well but seeking input on whether we need to recalibrate as I am worried about college...

Mortgage $600k @3.7%
529s - $25k and saving $700 per month
HYSA - $30k and saving $1000 per month
Retirement - $70-75k per year with balances around $700k
Student debt - 10k and paying $325 per month

I don't really have room to save too much more as our mortgage takes a big chunk of net pay. Should we keep going with retirement or divert some of that to college?

How? 600k at 3.7% is about $2750. Even with another $1000 for taxes and insurance it shouldn't be a "big chunk" of your net.

+1

The OP also missed the opportunity to save as income increase, without playing "keep up with the joneses". You had a $150-200K increase in income in last 3 years. What have you been doing with all of it? If anything, your kids are now in school FT so daycare costs should be lower (not 0 but definately lower). You need to find where all the extra $$ is going and stop "wasting" it if you want to fund retirement and college properly.

given the interest rate, it's likely that OP bought a house. That's not a bad decision as a first financial move.

Anonymous wrote:

Anonymous wrote:Early 40s family with two elementary school kids making an HHI of $300 to $350k (3 years ago we were at 150k). We are saving reasonably well but seeking input on whether we need to recalibrate as I am worried about college...

Mortgage $600k @3.7%
529s - $25k and saving $700 per month
HYSA - $30k and saving $1000 per month
Retirement - $70-75k per year with balances around $700k
Student debt - 10k and paying $325 per month

I don't really have room to save too much more as our mortgage takes a big chunk of net pay. Should we keep going with retirement or divert some of that to college?

How? 600k at 3.7% is about $2750. Even with another $1000 for taxes and insurance it shouldn't be a "big chunk" of your net.

+1

The OP also missed the opportunity to save as income increase, without playing "keep up with the joneses". You had a $150-200K increase in income in last 3 years. What have you been doing with all of it? If anything, your kids are now in school FT so daycare costs should be lower (not 0 but definately lower). You need to find where all the extra $$ is going and stop "wasting" it if you want to fund retirement and college properly.

hi OP - we have had a very similar income jump about the same time you did! We are also early 40s with two elementary kids. We're behind you on retirement but ahead on 529s - I think now is the time to prioritize those so they can grow.

Mortgage $750k @2.75% w/ $800k equity
529s - $140k and saving $1600 per month
Retirement - $70-75k per year with balances around $500k

Still pay off the loan.

OP - student loan is 3.8%

Whats the rate on the student debt?

Anonymous wrote:Early 40s family with two elementary school kids making an HHI of $300 to $350k (3 years ago we were at 150k). We are saving reasonably well but seeking input on whether we need to recalibrate as I am worried about college...

Mortgage $600k @3.7%
529s - $25k and saving $700 per month
HYSA - $30k and saving $1000 per month
Retirement - $70-75k per year with balances around $700k
Student debt - 10k and paying $325 per month

I don't really have room to save too much more as our mortgage takes a big chunk of net pay. Should we keep going with retirement or divert some of that to college?

How? 600k at 3.7% is about $2750. Even with another $1000 for taxes and insurance it shouldn't be a "big chunk" of your net.

This^^^. Use the HYSA to pay off the student loans now.

While you are behind on retirement, you are really behind on college savings. I’d only go up to the 401(k) limits, which is $23k per year for 2024 per person, and then redirect everything else to 529s while replenishing your HYSA at the rate of $1k per month.

Agree you are generally on the right track but the college savings would definitely worry me as well.

I would try to up future 529 contributions to at least 1000/month, either by temporarily reducing contributions to your HYSA by $300/month or (if the interest rate you’re paying for student loans is higher than you’re getting from the HYSA) just using some of that money to pay off your student loans outright.

Congrats. You seem to be in good shape and in the right path. IMO I would prioritize retirement first then 529s. Retirement funding is a marathon. Funding your kids college is a nice to have if you can pull it off. The 529 doesn’t have to fund ALL college. It’s ok if you need other ways to fund college when the time comes. Also look at your student debt and its rate. Might make sense to pay that off.

Early 40s family with two elementary school kids making an HHI of $300 to $350k (3 years ago we were at 150k). We are saving reasonably well but seeking input on whether we need to recalibrate as I am worried about college...

Mortgage $600k @3.7%
529s - $25k and saving $700 per month
HYSA - $30k and saving $1000 per month
Retirement - $70-75k per year with balances around $700k
Student debt - 10k and paying $325 per month

I don't really have room to save too much more as our mortgage takes a big chunk of net pay. Should we keep going with retirement or divert some of that to college?