Anonymous
Post 09/18/2020 21:14     Subject: How do people fully fund 529s
Anonymous wrote:
Anonymous wrote:I have 2 girls in HS and a total of $250K saved for college, and yet this only fully funds them for an in-state school. If either goes out of state to public or private, the costs are prohibitive. Even within the confines of the DCUMer, how do people fully fund their child's undergraduate education. Second, do most colleges provide some form of merit aid for strong students, such that that actual costs are less than what I'm seeing on college websites?


Sometimes we need to tell them that they can only attend in-state schools...or get loans for the difference if they go out of state.


I have always told mine they will go to state schools. We will apply out of state but they understand cost is an issue and no loans.
Anonymous
Post 09/18/2020 21:13     Subject: How do people fully fund 529s
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Expensive schools cost about 70k all in.

I realized that once we started making 300k it was possible to fund as you go for 1 kid if need be. If you have more then 1 then hopefully they are 4 years apart or get your household salary up to 400k. Also never pay for a PHD, any good programs they give funding for the student.


What on earth are your expenses if you think you cannot afford 2 kids in college on $300K.


Taxes and retirement savings? $300k = ~$160K take home. If you can afford two kids in private college with $160K take home, I'd be very impressed. I have no idea how you survive after paying property taxes, groceries, utilities, etc.


If you save and cut out the retirement savings and private schools are important to you, then its plenty. I would hope at that income level your house would be paid off by the time your kids get to college. We live on far less than $160 take home and managed to save for college. I don't care about a private college nor do my kids. Our house will be paid off before high school. We pay cash for our vehicles. Life is about the choices you make. If its important to you on $300K income you can afford two kids in private colleges.


You have misread and then doubled down on it. PP was VERY CLEAR that they are talking about PAYING AS YOU GO FOR COLLEGE. That means paying cash out of your earnings that year. NOT SAVING in advance to pay for it. And that poster is right, if you are making $300k then you take home far less of it and would be hard pressed to cash flow two private college tuitions - even if you get a slight break on one of them - out of the cash you earn that year.

Good for you for paying off your house in advance. Not relevant to the person you replied to, but good for you anyway.


Point is they could save and choose not to so they'd need to adjust their budget or do things like pay off their mortgage to make it work.
Anonymous
Post 09/18/2020 21:12     Subject: How do people fully fund 529s
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Expensive schools cost about 70k all in.

I realized that once we started making 300k it was possible to fund as you go for 1 kid if need be. If you have more then 1 then hopefully they are 4 years apart or get your household salary up to 400k. Also never pay for a PHD, any good programs they give funding for the student.


What on earth are your expenses if you think you cannot afford 2 kids in college on $300K.


Taxes and retirement savings? $300k = ~$160K take home. If you can afford two kids in private college with $160K take home, I'd be very impressed. I have no idea how you survive after paying property taxes, groceries, utilities, etc.


If you save and cut out the retirement savings and private schools are important to you, then its plenty. I would hope at that income level your house would be paid off by the time your kids get to college. We live on far less than $160 take home and managed to save for college. I don't care about a private college nor do my kids. Our house will be paid off before high school. We pay cash for our vehicles. Life is about the choices you make. If its important to you on $300K income you can afford two kids in private colleges.


You have misread and then doubled down on it. PP was VERY CLEAR that they are talking about PAYING AS YOU GO FOR COLLEGE. That means paying cash out of your earnings that year. NOT SAVING in advance to pay for it. And that poster is right, if you are making $300k then you take home far less of it and would be hard pressed to cash flow two private college tuitions - even if you get a slight break on one of them - out of the cash you earn that year.

Good for you for paying off your house in advance. Not relevant to the person you replied to, but good for you anyway.
Anonymous
Post 09/18/2020 19:56     Subject: How do people fully fund 529s
Anonymous wrote:I have 2 girls in HS and a total of $250K saved for college, and yet this only fully funds them for an in-state school. If either goes out of state to public or private, the costs are prohibitive. Even within the confines of the DCUMer, how do people fully fund their child's undergraduate education. Second, do most colleges provide some form of merit aid for strong students, such that that actual costs are less than what I'm seeing on college websites?


Sometimes we need to tell them that they can only attend in-state schools...or get loans for the difference if they go out of state.
Anonymous
Post 09/18/2020 19:49     Subject: How do people fully fund 529s
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Expensive schools cost about 70k all in.

I realized that once we started making 300k it was possible to fund as you go for 1 kid if need be. If you have more then 1 then hopefully they are 4 years apart or get your household salary up to 400k. Also never pay for a PHD, any good programs they give funding for the student.


What on earth are your expenses if you think you cannot afford 2 kids in college on $300K.


Taxes and retirement savings? $300k = ~$160K take home. If you can afford two kids in private college with $160K take home, I'd be very impressed. I have no idea how you survive after paying property taxes, groceries, utilities, etc.


If you save and cut out the retirement savings and private schools are important to you, then its plenty. I would hope at that income level your house would be paid off by the time your kids get to college. We live on far less than $160 take home and managed to save for college. I don't care about a private college nor do my kids. Our house will be paid off before high school. We pay cash for our vehicles. Life is about the choices you make. If its important to you on $300K income you can afford two kids in private colleges.
Anonymous
Post 09/18/2020 19:04     Subject: How do people fully fund 529s
Anonymous wrote:
Anonymous wrote:Expensive schools cost about 70k all in.

I realized that once we started making 300k it was possible to fund as you go for 1 kid if need be. If you have more then 1 then hopefully they are 4 years apart or get your household salary up to 400k. Also never pay for a PHD, any good programs they give funding for the student.


What on earth are your expenses if you think you cannot afford 2 kids in college on $300K.


Taxes and retirement savings? $300k = ~$160K take home. If you can afford two kids in private college with $160K take home, I'd be very impressed. I have no idea how you survive after paying property taxes, groceries, utilities, etc.
Anonymous
Post 09/18/2020 19:01     Subject: Re:How do people fully fund 529s
Anonymous wrote:
Anonymous wrote:
We have $50K saved for each of our middle school aged kids, and will not have the ability to save substantially more. Our kids will be living at home and going to George Mason at this rate.


Poor babies! Seriously, lots of people have to take out loans to do NOVA for two years in the hopes of affording any college at all, so buck up.

If they want to do something else, they can take out loans and pay them back, like many people do.


+1 Learn to say no to your kid


No. This is the difference between upward and downward mobility.
Anonymous
Post 09/18/2020 18:22     Subject: Re:How do people fully fund 529s
Anonymous wrote:
We have $50K saved for each of our middle school aged kids, and will not have the ability to save substantially more. Our kids will be living at home and going to George Mason at this rate.


Poor babies! Seriously, lots of people have to take out loans to do NOVA for two years in the hopes of affording any college at all, so buck up.

If they want to do something else, they can take out loans and pay them back, like many people do.


+1 Learn to say no to your kid
Anonymous
Post 09/18/2020 18:20     Subject: How do people fully fund 529s
We live in a large two bedroom apartment. My kids share a bedroom. They can go to any school they want to, no loans required. Their education is my priority.
Anonymous
Post 09/18/2020 18:18     Subject: How do people fully fund 529s
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:We have about the same for our two HS kids. Our plan is to pay out of pocket for remainder. Also, we are still putting in $2000/month. Once the older one starts college we will use that to pay tuition instead.


$2000/month!?!


The funny/sad part is 2,000 a month won't fund even some in state colleges


We couldn’t start until they were 6 and 8. Now they are 14 and 16 going to college in 2 and 4 years. We have been investing $2000/month total for many years now. They have enough for in state but not enough for out of state.
Anonymous
Post 09/18/2020 18:17     Subject: How do people fully fund 529s
Anonymous wrote:
Anonymous wrote:Expensive schools cost about 70k all in.

I realized that once we started making 300k it was possible to fund as you go for 1 kid if need be. If you have more then 1 then hopefully they are 4 years apart or get your household salary up to 400k. Also never pay for a PHD, any good programs they give funding for the student.


What on earth are your expenses if you think you cannot afford 2 kids in college on $300K.


It says pay as you go. I don’t think you could save 140k a year on that income, but 70k should be easy.
Anonymous
Post 09/18/2020 18:12     Subject: How do people fully fund 529s
Anonymous wrote:Expensive schools cost about 70k all in.

I realized that once we started making 300k it was possible to fund as you go for 1 kid if need be. If you have more then 1 then hopefully they are 4 years apart or get your household salary up to 400k. Also never pay for a PHD, any good programs they give funding for the student.


What on earth are your expenses if you think you cannot afford 2 kids in college on $300K.
Anonymous
Post 09/18/2020 18:09     Subject: How do people fully fund 529s
Expensive schools cost about 70k all in.

I realized that once we started making 300k it was possible to fund as you go for 1 kid if need be. If you have more then 1 then hopefully they are 4 years apart or get your household salary up to 400k. Also never pay for a PHD, any good programs they give funding for the student.
Anonymous
Post 09/18/2020 16:23     Subject: Re:How do people fully fund 529s
DH got an end of the year bonus when my kids were in early elementary school. We put it lump sum in a 529 plan and then it grew enough that they could each afford 4 years of in-state flagship. One child got a 4-year scholarship covering half tuition and the other is saving on room and board due to covid. They have enough left for grad school.
Anonymous
Post 09/18/2020 16:20     Subject: Re:How do people fully fund 529s
We have $50K saved for each of our middle school aged kids, and will not have the ability to save substantially more. Our kids will be living at home and going to George Mason at this rate.


Poor babies! Seriously, lots of people have to take out loans to do NOVA for two years in the hopes of affording any college at all, so buck up.

If they want to do something else, they can take out loans and pay them back, like many people do.


Hilarious. People are on here complaining that $200k in 529 savings isn’t enough, and this is the post you choose to attack. Never change, DCUM. Please always stay as gratuitously nasty, hypocritical, and dissonant as you are now.