Anonymous
03/14/2024 20:06
Subject: Anyone a 529 millionaire?
Anonymous wrote:Anonymous wrote:No. It sounds to me like you overfunded. If you are very high net worth it doesn’t matter. But unless they go to the most expensive schools for undergrad and grad school I am not sure you will be able to spend this.
We had about $250k each, and my kids are now going to undergrads where they get almost free rides, so I wish we had saved less…
But if they do go to a Top school, those are $85K+ currently. My kid is at one. It's 5K+ more each year. So it will be $100K/year by the time his first kid enters college and at least $110K+ by their senior year. They could easily use $400K+ for just undergrad. Or they are well funded for a lower cost undergrad and all of PT/Med/Dental/Law/Professional Grad school.
But the time the younger goes to college (guessing at least 5+ years before starting), they could use up $450K+ for just undergrad.
Fact is, if you are targeting Top schools, very few give full rides.
Also, if you can fund them like this, they are likely High Income/higher net worth. So anything left can just be passed to the grandkids.
Our oldest is a junior at an 82k public. I paid $34k for tuition in January and it’s nearly recovered that amount because we still have in 100% stocks. I checked earlier this week and were about $4-5k short. Have like $440k in account. OP will be fine, no matter the school.
Anonymous
03/14/2024 17:47
Subject: Anyone a 529 millionaire?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:This is why I funded the minimum to send my kids in state. And I modified the stupidly low assumptions on growth that they had in their calculators, given that I invested all in stocks. What a hassle to have that amount of money left over in a 529.
Depends, for us we plan to help with grad school and any future grandkids or our kids/spouses grad school, so the 529 is just a great way to get tax free growth and to not need to invest as much capital to make it happen. Imagine 25+ years of growth to help fund college
Are you extremely wealthy? As in you don’t need to work and could live off your investments? Because we are high earners and I’m certainly not continuing to work to pay for future grandkids.
Why? You are not really thinking clearly.
Agreed. Not sure the purpose. If you don't have the money to help GK that's fine. However, if you do have the money, not sure why you wouldn't help if you are rich.
Anonymous
03/14/2024 17:45
Subject: Anyone a 529 millionaire?
Anonymous wrote:+1 I am intentionally holding back now. With kid getting a free ride, I don’t need a whopping 529.Anonymous wrote:No. It sounds to me like you overfunded. If you are very high net worth it doesn’t matter. But unless they go to the most expensive schools for undergrad and grad school I am not sure you will be able to spend this.
We had about $250k each, and my kids are now going to undergrads where they get almost free rides, so I wish we had saved less…
If your kid gets good merit or a "free ride" you can withdraw from the 529 without penalty. You can withdraw for merit/scholarships. So there truly is no harm in investing up to the anticipated price of In-State (all in/Tuition and R&B&Books&Travel). So if your kids truly got "almost full rides" you should have withdrawn accordingly from their 529, if you didn't want to leave that money for grad school or future grandkids