Hi all, Wanted to know how much do parents invest in 529 plan per month and which plans are the best? Based on research planning to invest in betterment or vanguard. Is it suggested to stop the contribution once fund has 50k- 70k in next 5 years? Tc 130k #personalfinance #investments
If you don’t mind me asking, how much do you invest per month? And will you stop contributing once it reaches certain amount in next 5 years?
Imagine doing this and you kids decided to not go to college.
You can use it for other purpose
Wow I will disown my kid if he refuses to go to college. Life is already difficult with a degree but without a degree I cannot imagine
Ok noted, but what is your alternative solution to save up for college funds if they decide to pursue
We do $1300 a month - my baby is 6 months old
Fuck that's a lot of money to put in 529. I hardly invest that much into my own retirement funds. I've been depositing 300/mo into 529 ever since my child was 1. Shouldve started earlier but still I think that's plenty enoguh to help him. He can cover the rest, or join the military like his old man did
Agreed. I paid for private college myself working 3 jobs and going to school at night. Didn’t get a dime from my dad even tho he could easily help. Don’t want my child to feel that way but also don’t want to just make it so easy that she won’t appreciate it. Nothing wrong with taking loans. It’s teaching you responsibility.
Do you plan to invest for next 18 years or stop after investment reaches certain amount?
I think we will be putting $$$ until she is 18. Maybe less, maybe more but always something
We use state specific plan. We are investing quite a lot these initial years - 20K per year (as currently we can manage that) But will probably taper off after kid reaches 10 years or certain amount is reached. We are not doing any back door IRA and stuff so probably may start looking more towards our own retirement. My concern is if my kid wants to go into medical and is smart enough to get it then I don’t want him to be saddled with too many loans. Also since we had a child quite late we will be near retirement when he starts college and may not be able to help him then.
Wow 20k an year for 10 years. That’s 200k without counting growth. I wish I had that much money to go to college. On a serious note. You should really take care of your retirement first. Your kid will always be able to take loans, but there are no loans for retirement.
1k/month for 2 kids. Fidelity has S&P 500 index funds..
This ^
We superfund ours with the ~150K limit at once
You win the Blind shaft measuring contest. There's various ways that Blinders measure dicks around here and in the 529 department, youre a clear winner
Great question. I don't know. I live in VA and contribute to NY 529 cause I read somewhere on the Internet that their 529 has great performance and cost ratings. Now that I think about it, I probably shouldve just opened an account on Vanguard or participated in my own states plan for those minor deductions