|
Anyone decide against 529 plan?
| Posted By |
Message |
| Pages: 1 [2] |
|
|
Re: Anyone decide against 529 plan?
We do high yield savings instead. I may give the savings to them when they graduate college or another big life event when they are mature enough to use it properly. I know it’s an unpopular opinion, but I don’t believe in paying for their college.
|
Posted 2/21/21 10:40 PM  |
| |
|
Long Island Weddings
Long Island's Largest Bridal Resource |
mommy2be716
LIF Adult
Member since 1/16 2921 total posts
Name:
|
Re: Anyone decide against 529 plan?
Posted by aliwnec10
Honestly I would do it. You can transfer the funds from account to account so if 1 kid doesn't go to college, then it can be used for your other child. You don't lose the money if they don't go to college. You just pay a tax on the earnings, not the whole amount.
So for example:
my 9 year old has $74k in his. $34k of that is the earnings. A regular savings account wouldn't give you anywhere near that.
yea i benefitted from this. I'm the youngest and the money trickled down to me. After my bachelors, I was able to fund my master's with the extra 529 money from my siblings.
|
| Posted 2/21/21 11:16 PM |
| |
|
mommy2be716
LIF Adult
Member since 1/16 2921 total posts
Name:
|
Re: Anyone decide against 529 plan?
Posted by MrsWoods
I also wanted to add that if your child has a 529 account they will receive less financial aid for college. Colleges count 529 as income. So be aware of that. So if you don't think you will have enough money saved up to pay for all expenses, be aware that student may have to shell out some extra money to pay it.
I wasn't aware of this, but my siblings and I all had college fully funded with 529's, and none of us paid full tuition. I got over 12k off a year and tuition at that time was 27k/year
ETA: sorry i read this wrong. confused financial aid with scholarship $$.. either way, if your kids are smart about where they go to college and don't go with anything crazy expensive, then your 529 money will be more worthwhile. It's worth the investment IMO
Message edited 2/21/2021 11:21:59 PM.
|
| Posted 2/21/21 11:18 PM |
| |
|
JandJ1224
Member since 6/06 5911 total posts
Name:
Jannette
|
Re: Anyone decide against 529 plan?
We invest in 529 plans for our girls. The returns have been great. The site is so easily navigated too. I often said I wish they had a retirement savings platform that was similar.
|
| Posted 2/23/21 10:03 PM |
| |
|
| Pages: 1 [2] |
Potentially Related Topics:
Currently 357806 users on the LIFamilies.com Chat
|
