Econ 529 college savings
- Thread starter DoglegArms
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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.
- Jul 5, 2015
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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.
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.
It's not for everyone, and I sure wouldn't want that to be my only plan.
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.
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.
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
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.
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.
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
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...
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Depends on what your kids want to do/are good at.
Some college degrees are obviously pointless and worthless.
Others re awesome and lead to an incredible job.
I have always thought it would be good to give a kid the opportunity to go as far as they can. For some it's tech school (which is good) for others, they might win a Nobel prize or come up with something that can change lives. For those, there is no path other than college.
Yes, "do eet," on the 529. Tax deferred means the effective tax paid will be on them in the lowest bracket (most likely) when they need it. The habit of saving a bit often (over time) reduces the felt impact to you/them vs a bod outlay. If you have friends/family have them make contributions a bit when they can.
My oldest is smart enough to pursue a college degree. But if he actually applies himself to do so is another thing. Now my second kid is another breed, he is wild and out currently, but seems to be decently smart at almost 3.
The problem with this idea is that you should be prepared and working on this long before a decision like that can reasonably be made. The purpose of the 529 is TIME in the market. If you wait until they are 15 or 16 and have a reasonable idea of what they want to do, it's too late to start saving for a college degree.
There's always loans.....
If the degree is in anything worthwhile, the investment will be a wise one.
Also, the tax advantages of most states' 529s are pretty substantial.
Anyone looking at college should also apply for any scholarships they can. Several thousand per year go unawarded.
I get what folks are saying. College isn't for everyone. Some people are better suited for technical stuff, and the military can be a good way to get some skills and get the GI bill..... Or do college ROTC. My uncle did that, and the military paid for his college and his advanced degrees and licenses.
People also should consider co-op. Seems to be overlooked for some reason, but a co-op program where someone goes to school on the side and works part time is an excellent opportunity. When that person gets their degree, it will come with real work experience, and that is often the hardest part.
My entire college debt was $9800. I graduated in '93. I was making 10x that amount within a decade, and I'm thankful to be making a good bit more now. I definitely would not be where I am without a degree.
The way I look at college is it will be what a kid makes out of it. A great opportunity which some squander by smoking enough pot to kill a horse, and others take full advantage of to really improve their lives and set the next generation up for success. It's an awesome opportunity for those who take it seriously.
The best advice though..... Degrees or not, military or civilian background: You get paid for what you can do. No where you went, or who you know. Your skill set is your product. A lot of people think that a big-name school will make it easier to get a job. Nope. A big skill set will.
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Don't get me wrong, I have two degrees I am still paying for with about 11K to go. My parents weren't prepared for me to go to college so I am paying for it now. For someone to wait until his/her child is almost of age and then try to start saving is simply naive. Sure there are loans, but as an adult that chose to have a child, it'd be more worth your money to start saving early by an extremely far margin.
If your child's degree will cost 50K and you saved 25K in a 529 and doubled your money in the market in 18 years, your investment would be 25K (doubling money in the market in the last 18 years is nearly child's play). On top of that, you had 25K in tax deferred income. If you waited until college time and took 50K in loans then pay 5.05% (current going rate for undergrad loans) over the next 10 years, you'll be paying $531.55 a MONTH and pay a total of $63,786.05. And don't forget the 25 ish percent you're paying for each one of those dollars in income tax as well. Ends up more like $79,732.56. Seems pretty clear to me that it is worth the couple bucks a paycheck...
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How much pot would it take to kill a horse?
The estimates for lethal toxicity in humans are ridiculous.....1200+mg thc per kg body weight. You'd have to smoke a literal ton of weed in a very short period of time to have a shot at OD'ing.
I think you'd be better off just trying to crush the horse with the weight of the weed....it'd likely require less.
Depends on the horse...
Sorta like "What is the average air speed velocity of a laden swallow? "
“What do you mean, an African or European Swallow?”
Monty Python fans...
Seems a lot like the kind of question one comes up with when one gets really baked....
(Followed shortly by "I got the munchies, man...." )