Anonymous
Post 12/18/2016 16:44     Subject: Is $1000/mo in a 529 enough?
Anonymous wrote:
Anonymous wrote:What's your HHI?

You're missing out on tax benefits putting that much in a 529.

At the very least, put it in two 529s (one in your name, one in your DH's). If you are eligible for a Roth, I would split the thousand as $330 in your 529, $330 in your husband's, and the balance split between two Roth IRAs. You can use Roth money to pay for college, and in the event your child doesn't end up needing it, you still have it for your retirement.


HHI is ~350k. we both max out 401(k) (spouse has a 9% match; I have none because I work in biglaw). In addition, we put away about $4000 in index funds. We also each backdoor the maximum into Roth IRA accounts.

We each put the minimum into the state-sponsored 529 for the write-off. The remainder goes into a 529 with Vanguard (fees are lower). What would be better for us to do?


In MD you can open 529 accounts in your names and each other's names. This way you can take advantage of the state deductions. Then you roll over to vanguard for the lower fees (at most once a year per beneficiary).
Anonymous
Post 12/18/2016 16:30     Subject: Is $1000/mo in a 529 enough?
Anonymous wrote:But how are you going to pay for the private high school that is the feeder for the private university?


haven't given private school much thought. we are zoned for Northwood, which doesn't appear to be too great. i went to a shit high school, though, and turned out okay and know plenty of people who went to privates and went nowhere in life. i am skeptical of how much HS matters. i think it's more the home environment and kid's drive.
Anonymous
Post 12/18/2016 16:23     Subject: Is $1000/mo in a 529 enough?
Anonymous wrote:OP here. I was talking with a friend recently, who said "well you could be putting away more than that," which kind of surprised me because I thought we were actually saving on the higher end.


There are online calculators out there that will tell you how much you need to save based on various assumptions. Try the vanguard site for starters. Failing that you can calculate it yourself if you've got a decent financial calculator or know how to use the functions in excel.
Anonymous
Post 12/18/2016 16:19     Subject: Is $1000/mo in a 529 enough?
But how are you going to pay for the private high school that is the feeder for the private university?
Anonymous
Post 12/18/2016 16:16     Subject: Is $1000/mo in a 529 enough?
Wow, you save more per month than I make. Good for you.
Anonymous
Post 12/18/2016 15:45     Subject: Is $1000/mo in a 529 enough?
Anonymous wrote:OP here. I was talking with a friend recently, who said "well you could be putting away more than that," which kind of surprised me because I thought we were actually saving on the higher end.


I think your friend was most likely trying to one up you. And you are clearly one upping a lot of people by the amount of money you save each month. I don't think you need an anonymous forum to give you a pat on the back for it.
Anonymous
Post 12/18/2016 15:41     Subject: Is $1000/mo in a 529 enough?
OP here. I was talking with a friend recently, who said "well you could be putting away more than that," which kind of surprised me because I thought we were actually saving on the higher end.
Anonymous
Post 12/18/2016 15:37     Subject: Is $1000/mo in a 529 enough?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:What's your HHI?

You're missing out on tax benefits putting that much in a 529.

At the very least, put it in two 529s (one in your name, one in your DH's). If you are eligible for a Roth, I would split the thousand as $330 in your 529, $330 in your husband's, and the balance split between two Roth IRAs. You can use Roth money to pay for college, and in the event your child doesn't end up needing it, you still have it for your retirement.


HHI is ~350k. we both max out 401(k) (spouse has a 9% match; I have none because I work in biglaw). In addition, we put away about $4000 in index funds. We also each backdoor the maximum into Roth IRA accounts.

We each put the minimum into the state-sponsored 529 for the write-off. The remainder goes into a 529 with Vanguard (fees are lower). What would be better for us to do?


I am feeling like this is a bit of a brag post. You are saving a lot of money between your 529s, your index funds and Roth IRA accounts. I'm scratching my head how you could not see that.


+1. I'm of a similar income and save a similar amount and wouldn't post this asking if I'm saving enough.
Anonymous
Post 12/18/2016 15:36     Subject: Is $1000/mo in a 529 enough?
Anonymous wrote:
Anonymous wrote:What's your HHI?

You're missing out on tax benefits putting that much in a 529.

At the very least, put it in two 529s (one in your name, one in your DH's). If you are eligible for a Roth, I would split the thousand as $330 in your 529, $330 in your husband's, and the balance split between two Roth IRAs. You can use Roth money to pay for college, and in the event your child doesn't end up needing it, you still have it for your retirement.


HHI is ~350k. we both max out 401(k) (spouse has a 9% match; I have none because I work in biglaw). In addition, we put away about $4000 in index funds. We also each backdoor the maximum into Roth IRA accounts.

We each put the minimum into the state-sponsored 529 for the write-off. The remainder goes into a 529 with Vanguard (fees are lower). What would be better for us to do?


I am feeling like this is a bit of a brag post. You are saving a lot of money between your 529s, your index funds and Roth IRA accounts. I'm scratching my head how you could not see that.
Anonymous
Post 12/18/2016 15:26     Subject: Is $1000/mo in a 529 enough?
Anonymous wrote:What's your HHI?

You're missing out on tax benefits putting that much in a 529.

At the very least, put it in two 529s (one in your name, one in your DH's). If you are eligible for a Roth, I would split the thousand as $330 in your 529, $330 in your husband's, and the balance split between two Roth IRAs. You can use Roth money to pay for college, and in the event your child doesn't end up needing it, you still have it for your retirement.


HHI is ~350k. we both max out 401(k) (spouse has a 9% match; I have none because I work in biglaw). In addition, we put away about $4000 in index funds. We also each backdoor the maximum into Roth IRA accounts.

We each put the minimum into the state-sponsored 529 for the write-off. The remainder goes into a 529 with Vanguard (fees are lower). What would be better for us to do?
Anonymous
Post 12/18/2016 15:20     Subject: Is $1000/mo in a 529 enough?
Really? Of course it's enough.

Hope that your life continues to be predictable and privileged to your family so that money stays put and you are able to give your child such a comfortable start in life.



Anonymous
Post 12/18/2016 15:17     Subject: Is $1000/mo in a 529 enough?
What's your HHI?

You're missing out on tax benefits putting that much in a 529.

At the very least, put it in two 529s (one in your name, one in your DH's). If you are eligible for a Roth, I would split the thousand as $330 in your 529, $330 in your husband's, and the balance split between two Roth IRAs. You can use Roth money to pay for college, and in the event your child doesn't end up needing it, you still have it for your retirement.
Anonymous
Post 12/18/2016 15:14     Subject: Is $1000/mo in a 529 enough?
If $1000 a month for 18 years is not enough, then it is too expensive.
Anonymous
Post 12/18/2016 15:08     Subject: Is $1000/mo in a 529 enough?
We are only doing $500/month so you're in much better shape. But our house will be paid off soon after DS goes to college so we'll be able to use that $$$ for college, hopefully.
Anonymous
Post 12/18/2016 14:56     Subject: Is $1000/mo in a 529 enough?
We have a 2 y/o and are putting $1000 per month in a 529. Assume full freight at a private university. Are we going to come up short in 16 years?