Do you live in a state with no income tax? Assuming you live in the DMV then you are missing out on that immediate tax benefit.

Anonymous wrote:We don't have one for our kids. We didn't even contribute to our retirement for more than a decade.

As it turns out, it looks like neither is heading for college. We feel bad about it since both of our families have gone to college for the past three generations. I guess we dropped the ball.

What are they going to do?

Families at a certain income and who went to college absolutely have them 100%.

Anonymous wrote:

Anonymous wrote:I doubt it.

Growing up, I sure didn't nor did my spouse.

Our kids have one but a lot of our neighbors and friends don't have them for their kids.

How old are you? They were introduced in 1996. I didn’t have one growing up because I had already graduated from college.

I was born in '84 to immigrant parents.
In '96 they bought their first house and growing up they always said my brother and I would get scholarships for college.
Thankfully we did. Their money was tied up in familial obligations and real estate; no college fund plans.

FWIW they both were college graduates with advanced degrees.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think it's fairly common for UMC families to have a 529 plan--they are the ones who benefit most from the state tax advantage and have surplus money to invest and who will likely not qualify for much financial aid. Some frugal and foresighted MC families have one also.

This is right and PP who said *most* families have no savings is also right.

+1000

Also, if you are already saving with the intention of using those funds for college (and you don't need them as some kind of emergency funds) by not using a 529 you could be missing out on state tax deduction as well as tax-free growth of the investment.

This. Yes, we have savings and investments (including a couple of investment properties) we can cash out for DC’s college but you also don’t know what curveball life is going to throw at you.

When I suggested to DH that we set up a 529 plan when first DC was born he said we don’t need to. I guess there was some verbal commitment from DH’s parents that they would be paying for all of the grandchildren’s college education. Yes, he comes from a wealthy family and they have the funds but I feel like it’s risky to rely on that. I didn’t grow up in a financially secure family so it makes me very nervous.

Wait. You’ve never asked again? What if the grandparents think paying for college means $10k/year? They could have no idea college might be $75k/year!

yes

Anonymous wrote:Single mom, GS-14.

A bit house poor right now. DD is 3; I save $500 per month in her 529.

Nice! You're doing great.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think it's fairly common for UMC families to have a 529 plan--they are the ones who benefit most from the state tax advantage and have surplus money to invest and who will likely not qualify for much financial aid. Some frugal and foresighted MC families have one also.

This is right and PP who said *most* families have no savings is also right.

+1000

Also, if you are already saving with the intention of using those funds for college (and you don't need them as some kind of emergency funds) by not using a 529 you could be missing out on state tax deduction as well as tax-free growth of the investment.

This. Yes, we have savings and investments (including a couple of investment properties) we can cash out for DC’s college but you also don’t know what curveball life is going to throw at you.

When I suggested to DH that we set up a 529 plan when first DC was born he said we don’t need to. I guess there was some verbal commitment from DH’s parents that they would be paying for all of the grandchildren’s college education. Yes, he comes from a wealthy family and they have the funds but I feel like it’s risky to rely on that. I didn’t grow up in a financially secure family so it makes me very nervous.

Anonymous wrote:We don't have one for our kids. We didn't even contribute to our retirement for more than a decade.

As it turns out, it looks like neither is heading for college. We feel bad about it since both of our families have gone to college for the past three generations. I guess we dropped the ball.

If it’s not college it might be something else they might be interested in that you could help with financing.

Anonymous wrote:A family member was surprised to hear we didn't have a 529 plan for our DC's college. We have other investments and savings we plan to use when the time comes but it got me wondering - do most people invest in 529 when they have children? Are we somehow missing out for not having one?

The biggest advantage is the tax free growth. It’s like a Roth. Your money grows and compound and if you use it for college you pay no taxes on all that profit. So in theory you could put in 100k and that money could grow to 250k and you would not pay taxes on that 150k profit. You also are paying 100k for a 250k education with compounding and no taxes This is based on conservative returns over 14-18 years.

Your other investments if it’s in brokerage, you will have to pay taxes on them. In addition, you also get tax breaks up to a certain amount in most states and DC in the 529.

If your money is in savings account, you are losing money right now. You should never keep your money in savings but rather invest and have your money work for you.

Yes, we have them. Opened one for each kid when they were born and have always contributed. We’re big on college on both sides of the family.

Single mom, GS-14.

A bit house poor right now. DD is 3; I save $500 per month in her 529.

According to the college forum, if you haven't saved at least 200k/child--you have failed as a MC/UMC parent.

Anonymous wrote:I doubt it.

Growing up, I sure didn't nor did my spouse.

Our kids have one but a lot of our neighbors and friends don't have them for their kids.

How old are you? They were introduced in 1996. I didn’t have one growing up because I had already graduated from college.

We have one for our kids but only about $15k. We have other investment accounts in their names where most of their money is plus we also max out i bonds.