In order to participate in the GunBroker Member forums, you must be logged in with your GunBroker.com account. Click the sign-in button at the top right of the forums page to get connected.
How many here have a 529 plan for their kid?
Rack Ops
Member Posts: 18,596 ✭✭✭
I set up one for my kid a few months ago and have been making regular contributions to it.
I read somewhere that only about 3% of households actually contribute to a college savings fund....seems like a no-brainer to me. I guess a lot of people don't even know they exist.
http://www.savingforcollege.com/intro_to_529s/what-is-a-529-plan.php
I read somewhere that only about 3% of households actually contribute to a college savings fund....seems like a no-brainer to me. I guess a lot of people don't even know they exist.
http://www.savingforcollege.com/intro_to_529s/what-is-a-529-plan.php
Comments
I also opened an Educational IRA (aka Coverdell ESA) It did not have the flexibility of the 529 and the investment options were more limited. I have also found out this semester that getting the funds from the IRA to my daughters checking takes about 2 weeks and 30 minutes on the phone with them. The 529 is 3 to 4 days and takes 5 minutes online. The 529 automatically rebalances the investments based on the age of the child the older they get the more conservative the investments get. My younger daughters 529 seriously outperformed the older daughters one just because of the market conditions when she was very young.
They are both covered by the HOPE Scholarship here in Georgia as well that pays 80% of their tuition which sounds awesome, but the fees and books and room and board are close to triple what just tuition is. I'm not complaining. Every bit helps..
And at the end of the day... If there are funds left when they graduate they can go back to me and I can pay the tax on them. Or they can go to the child (who can pay tax on them since they were deducted pre tax.)
He helped matters by getting a tuition paid scholarship.
the problem is 99% after houseing car food 2.1 kids they dont have two cents to rub together
Is that because they earn too little, or spend too much?
For the vast majority of us, sending a child to college is going to result in some mixture of parents footing the bill or kids graduating with crippling debt (even those who go about it in a fiscally responsible manner).
There is a way to ease that burden considerably, but people just can't or won't think that far ahead, I guess.
quote:Originally posted by fordsix
the problem is 99% after houseing car food 2.1 kids they dont have two cents to rub together
Is that because they earn too little, or spend too much?
For the vast majority of us, sending a child to college is going to result in some mixture of parents footing the bill or kids graduating with crippling debt (even those who go about it in a fiscally responsible manner).
There is a way to ease that burden considerably, but people just can't or won't think that far ahead, I guess.
A lot of the parents don't understand time value of money. If you start out when the kid is born putting $25 a month into a 529 then increase it every six months to a year another $25 by the time they are 18 you'll have $25 to $30k set aside.
My Dad set up 2 for my brothers kids but he has dementia and I am looking after his assets.
PS My brother is useless but I want to ensure My Dads Grandkids are taken care of.
If the graduate does their part, putting in for scholarships, getting great grades, and the parents have done their job, it should work out fine.
There is a manager at work who thinks his poop don?t stink.
I?m guessing their family brings in $50,000 more a year than mine.
We took zero loans out to put our son thru college.
He is now in grad school with zero loans.
Said manager, second mortgage on house plus kid has student loans.
He asked me how much loans we had.
When I said none he poop himself.
What is the yearly maximum you can put in for each kid?
Honestly, I don't think there is a federal limit.
Under $14,000 in a year keeps it at "gift" level that won't be taxed.
I doubt any of us would be contributing anywhere near that much.
quote:Originally posted by Sam06
What is the yearly maximum you can put in for each kid?
Honestly, I don't think there is a federal limit.
Under $14,000 in a year keeps it at "gift" level that won't be taxed.
I doubt any of us would be contributing anywhere near that much.
Up to $14k per person so you and your wife could each give each of your 3 grandchildren $14k for a total of $84,000. (If you have that kind of change lying around I'm certain a good accountant can find you a better vehicle to fund college than the 529...
Authorized transfers for my two grandchildren this morning. I transfer stocks to a UGMA account for each grandchild and then pay the difference to make the total gift $14,000 each grandchild. It was twice that amount before my wife died.