This site is supported by the advertisements on it, please disable your AdBlocker so we can continue to provide you with the quality content you expect.

529 college savings

Discussion in 'Economics & Finance' started by DoglegArms, Jul 15, 2018.

  1. DoglegArms

    DoglegArms Silencer Dealer of 2015, 2016, 2017
    Trusted Trader

    Joined:
    Jul 12, 2015
    Messages:
    3,338
    Likes Received:
    3,184
    Anyone use a 529 for college savings? Is this the best route?


    Sent from my iPhone using Tapatalk
     
  2. EugenFJR

    EugenFJR Army SDM
    Trusted Trader Lifetime Supporter

    Joined:
    Jul 3, 2015
    Messages:
    6,024
    Likes Received:
    6,604
    I not saying this to be a smart ass, but I'd strongly encourage your kids to join the Army and get a huge signing bonus and $40,000.00 for college, maybe even more. I'm looking at going back for a masters in history, and I can't believe how stupid expensive it is now.
     
    Leshaire, DoglegArms and 1776 like this.
  3. Hayata

    Hayata This Space for Rent
    Lifetime Supporter

    Joined:
    Jul 5, 2015
    Messages:
    3,562
    Likes Received:
    3,443
    I have one for each boy - fraternal twins. I have the things set up so they suck money out of my checking account every month. It's also set up so it's less aggressive/risky in investing the closer the boys get to entering college.

    And I'm going to piggy-back what @EugenFJR said - school is stupid expensive right now. I was really hoping to get them through without a boat load of debt but maybe half a boat load at this point.

    Will definitely consider the Army for son #2 who wants to be an anesthesiologist. I can't even imagine how much an education like that would cost. Son #1 wants to be a mechanical engineer so at least I think once they graduate they will be employable.

    Is the 529 the best route? I dunno, I'm not a money guy so it fits the bill for us because it's automatic and the gains are protected against tax.
     
    DoglegArms likes this.
  4. Laufen

    Laufen Badass
    Trusted Trader

    Joined:
    Mar 23, 2015
    Messages:
    23,357
    Likes Received:
    16,319
    It's not for everyone, and I sure wouldn't want that to be my only plan.
     
    Leshaire and DoglegArms like this.
  5. EugenFJR

    EugenFJR Army SDM
    Trusted Trader Lifetime Supporter

    Joined:
    Jul 3, 2015
    Messages:
    6,024
    Likes Received:
    6,604
    There's also the Air Force, Navy and Marines... A few years in service gives you huge advantages, not just money for college, but VA loans, etc. are just a few of the advantages of serving in the armed forces. It's a lot better than graduating from college, with the crushing weight of debt from loans.
     
    DoglegArms likes this.
  6. Laufen

    Laufen Badass
    Trusted Trader

    Joined:
    Mar 23, 2015
    Messages:
    23,357
    Likes Received:
    16,319
    Yeah, but again, that path isn't for everyone. I do agree with taking a break between HS and college. The German system of military service for two years, or an apprenticeship/volunteer work makes a lot of sense.

    For instance, military service is not at all what I needed or wanted upon graduating. I had enough authoritarianism at home while growing up, if anything I needed less structure and a chance to figure out what I actually wanted for my life, not just continue the slave/servant relationship that I had while growing up on the farm.
     
    DoglegArms likes this.
  7. 1776

    1776 Ninja
    Trusted Trader

    Joined:
    Sep 5, 2015
    Messages:
    9,640
    Likes Received:
    10,799
    You forgot the puddle pirates........they're nothing like the military, but you still get all the benefits. Seriously, the few I know all agree, CG is just a job that happens to have a uniform for the majority of them
     
  8. Cudruln

    Cudruln My new friend......
    Trusted Trader Lifetime Supporter

    Joined:
    Jul 5, 2015
    Messages:
    8,860
    Likes Received:
    6,993
    I will say it.

    Screw college and get to work.

    That's what I did and turned out decent.

    But I do have a fund for the kids set up. Honestly have no idea exactly what it is though.
     
    Leshaire and 1776 like this.
  9. Allsmiles

    Allsmiles Frontiersman
    Site Supporter

    Joined:
    Mar 15, 2017
    Messages:
    404
    Likes Received:
    465
    We did the FL prepaid collage program when we lived there. We paid school tuition and got reimburses for part of that. It was taxed as a 529. Might check and see if you ha e any relatives in FL and start making payments. We started when the kids we 2 and 4 and paid about $5800 (over 5 years) each for their schooling. About a new car payment back in the day
     
  10. Leshaire

    Leshaire Ninja
    Trusted Trader Site Supporter

    Joined:
    Mar 27, 2015
    Messages:
    7,613
    Likes Received:
    5,224
    Yes and yes. Read up on it. Easy to contribute, federal tax deferred, can be spent on other people if your indicated kid doesn't go to college, can be used on a HUGE list of things including high school, books, and tons of other education related items. I opened one for my son and dumped a few grand in it day one and contribute monthly auto from my bank account. If the market does ABSOLUTELY NOTHING for 18 years I will still have a reasonable ~25K for him. But we know that won't happen. As I get raises I plan to up to monthly contribution too.

    Pretty sure if all else fails you can just pay the federal tax on your earnings and still take it out for whatever you want...
     
    #10 Leshaire, Dec 1, 2018
    Last edited: Dec 1, 2018
    DoglegArms likes this.