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General Discussion => Essentially Flyertalk => Topic started by: catastrophe on July 25, 2017, 11:10:40 PM

Title: College Savings Plans
Post by: catastrophe on July 25, 2017, 11:10:40 PM
Has anyone messed with a 529 plan or any other type of college savings plan?  I'm especially intrigued by the 529 "prepaid tuition" plan, although it sounds kinda crazy to me.
Title: College Savings Plans
Post by: steve dave on July 26, 2017, 06:10:52 AM
We have reg 529b plans for both lil sd and lil girl sd. NE has a really good 529b. Can deduct from state taxes.
Title: Re: College Savings Plans
Post by: Kat Kid on July 26, 2017, 07:39:54 AM
should be taxed.
Title: College Savings Plans
Post by: Pete on July 26, 2017, 08:00:43 AM
If you haven't maxed out both your 401K and your IRA, then the math says do that before you put money in a 529, and just pay out of pocket for school (or pay your kids' student loans for them later and let them take the deduction)
Title: Re: College Savings Plans
Post by: Pete on July 26, 2017, 08:01:54 AM
If you haven't maxed out both your 401K and your IRA, then the math says do that before you put money in a 529, and just pay out of pocket for school (or pay your kids' student loans for them later and let them take the deduction)


Also, this strategy is a nice hedge against "I want to go find myself and be a painter, Dad."
Title: Re: College Savings Plans
Post by: steve dave on July 26, 2017, 08:05:26 AM
If you haven't maxed out both your 401K and your IRA, then the math says do that before you put money in a 529, and just pay out of pocket for school (or pay your kids' student loans for them later and let them take the deduction)

good advice here
Title: Re: College Savings Plans
Post by: catastrophe on July 26, 2017, 08:06:54 AM
We have reg 529b plans for both lil sd and lil girl sd. NE has a really good 529b. Can deduct from state taxes.

From what I've read, TX's plan is pretty bad (high fees), but some states like NY have good ones and allow out of staters. Would you have done it without the state deductions? No income tax here so that benefit means nothing to me.
Title: Re: College Savings Plans
Post by: catastrophe on July 26, 2017, 08:11:28 AM
If you haven't maxed out both your 401K and your IRA, then the math says do that before you put money in a 529, and just pay out of pocket for school (or pay your kids' student loans for them later and let them take the deduction)

This is a pretty great idea.
Title: Re: College Savings Plans
Post by: steve dave on July 26, 2017, 08:55:31 AM
We have reg 529b plans for both lil sd and lil girl sd. NE has a really good 529b. Can deduct from state taxes.

From what I've read, TX's plan is pretty bad (high fees), but some states like NY have good ones and allow out of staters. Would you have done it without the state deductions? No income tax here so that benefit means nothing to me.

it grows tax free so we'd probably have done it anyway. like pete said though, make sure you max out your other tax advantaged options first.
Title: College Savings Plans
Post by: catastrophe on July 26, 2017, 10:03:20 AM
Seems to make it pretty simple then. I'll just put this at the bottom of the ol' tax-advantaged accounts contribution waterfall. Thanks cats!
Title: Re: College Savings Plans
Post by: 8manpick on July 26, 2017, 10:16:07 AM
should be taxed.

No kidding.  Just another tax loophole for the rich.
Title: Re: College Savings Plans
Post by: Brock Landers on July 26, 2017, 10:52:32 AM
Just tell your kids to hit the books a little harder than they already are.
Title: Re: College Savings Plans
Post by: star seed 7 on July 26, 2017, 10:59:22 AM
Make them pay for their own college
Title: Re: College Savings Plans
Post by: Pete on July 26, 2017, 11:25:31 AM
Make them pay for their own college


The "pay your kids' student loans" approach gives you the ability to switch to that if they flip out or whatever. 
Title: College Savings Plans
Post by: Pete on July 26, 2017, 11:28:48 AM
AND, as the child of parents who didn't save as much for retirement as they would have liked, I would definitely prefer to have more student loans and have more peace of mind thinking about my parent's retirement. 

Then, if you have saved for retirement properly, and you die early, your kids get it anyway.
Title: Re: College Savings Plans
Post by: Pete on July 26, 2017, 11:31:29 AM
And here's yet another one to noodle on....I'd rather have my kid go to tech school of some sort than get a history degree or some bullshit liberal arts degree (I have a bullshit liberal arts degree, but a grad degree too).   Those tech schools cost less, and the grads make more!
Title: Re: College Savings Plans
Post by: Pete on July 26, 2017, 11:33:23 AM
My parents are world class humans, farm kids from Osage County, but they didn't know jack crap about any of this stuff....thought If you just got "a college degree" you'd have it made.  God bless them, but LOL.
Title: Re: College Savings Plans
Post by: star seed 7 on July 26, 2017, 11:34:06 AM
My parents are world class humans, farm kids from Osage County, but they didn't know jack crap about any of this stuff....thought If you just got "a college degree" you'd have it made.  God bless them, but LOL.

Well it used to be like that
Title: Re: College Savings Plans
Post by: mocat on July 26, 2017, 11:38:04 AM
My parents are world class humans, farm kids from Osage County, but they didn't know jack crap about any of this stuff....thought If you just got "a college degree" you'd have it made.  God bless them, but LOL.

mrs mocat is from osage county. wow two great folks from the same county. go cats.
Title: Re: College Savings Plans
Post by: Mikeyis4dcats on July 26, 2017, 11:39:50 AM
My parents are world class humans, farm kids from Osage County, but they didn't know jack crap about any of this stuff....thought If you just got "a college degree" you'd have it made.  God bless them, but LOL.

Well it used to be like that

yeah, you used to be able to get a prt time job and pay for college while in school.    Last I looked KSU was somewhere north of $285/credit hr.    In 99 when I graduated I think it was $65?
Title: Re: College Savings Plans
Post by: catastrophe on July 26, 2017, 11:55:40 AM
About a decade ago I had a "full tuition" scholarship at $2,500 a semester.
Title: Re: College Savings Plans
Post by: catastrophe on July 26, 2017, 12:00:30 PM
AND, as the child of parents who didn't save as much for retirement as they would have liked, I would definitely prefer to have more student loans and have more peace of mind thinking about my parent's retirement. 

Then, if you have saved for retirement properly, and you die early, your kids get it anyway.

More solid points. It goes both ways for sure.

My (early :excited: )retirement is in pretty good shape atm, but I've already decided either way if we pay for any of our kids' college we're not going to tell them our intentions until we actually start doing it.
Title: College Savings Plans
Post by: catastrophe on July 26, 2017, 12:03:13 PM
I mean, I paid my own way, but college tuition is going up at a ridiculous pace and I was helped by financial aid that probably won't be available to my kids. Uncle Sam expects parents to pay for their kids' tuition if they can afford to.
Title: Re: College Savings Plans
Post by: Dugout DickStone on July 26, 2017, 04:48:22 PM
Dug's inlaws started one for each of my 6 daughters in Nevada I think.  I think there is already enough so they can go to whatever super fancy school they want.  Inlaws with cake are the best
Title: Re: College Savings Plans
Post by: catastrophe on January 31, 2018, 02:08:57 PM
Update: this is happening.  Took the easy option of a 529 through Vanguard (which is a Nevada plan).

Next question, how much money should go in this thing? I have no idea what a reasonable amount would be for college in like 18 years.
Title: Re: College Savings Plans
Post by: steve dave on January 31, 2018, 02:32:21 PM
Update: this is happening.  Took the easy option of a 529 through Vanguard (which is a Nevada plan).

Next question, how much money should go in this thing? I have no idea what a reasonable amount would be for college in like 18 years.

exactly how entitled are you planning on your children being?
Title: Re: College Savings Plans
Post by: catastrophe on January 31, 2018, 02:43:01 PM
Update: this is happening.  Took the easy option of a 529 through Vanguard (which is a Nevada plan).

Next question, how much money should go in this thing? I have no idea what a reasonable amount would be for college in like 18 years.

exactly how entitled are you planning on your children being?

I'm looking for something where my kids could either go to a non-shitty school tuition free, or go to a fancypants college and not be crippled by student debt.
Title: Re: College Savings Plans
Post by: steve dave on January 31, 2018, 02:48:33 PM
I'd say like $2,500 a year starting at birth could get them a nice farmy KSU degree (tuition only) but who the hell knows with that long of a run up.
Title: Re: College Savings Plans
Post by: star seed 7 on January 31, 2018, 02:50:18 PM
College will be free by then
Title: Re: College Savings Plans
Post by: 420seriouscat69 on January 31, 2018, 02:51:26 PM
I'm gonna make my kids strip for it.
Title: Re: College Savings Plans
Post by: yoga-like_abana on January 31, 2018, 03:19:49 PM
how hard is it to switch a 529 from one company to another? super pud, pud or super difficult
Title: Re: College Savings Plans
Post by: steve dave on January 31, 2018, 03:26:29 PM
how hard is it to switch a 529 from one company to another? super pud, pud or super difficult

NE's is through the state so it's not an option as far as I know.

https://www.nest529direct.com/