Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Old 05-15-2014, 06:49 PM   #21
gone traveling
Join Date: May 2014
Posts: 153
I am just walking backwards, forwards. Maybe we are viewing the same picture from different perspectives.

The 529s, are devided by 250 - 500/mn and totals at 103k - 21k. Ages 8 - 3. Does not appear that dds will qualify for Need based aid. Merit aid may be possibility and highly dependent on the school. Understand that 529 is seen as a single sum by the school, regardless of who the beneficiary or how the funds are allocated between the siblings.

assumptions: 1. Goal is to fund college to the maximum extent possible given a risk tolerance; 2. Risk tolerance changes as dds approaches college. (age based, years to college, essentially a retirement scenario). 3. Instate schools, $30,000/yr current, 4 years undergrad.

The following you will need a Calculator,and maybe run Firecalc for confidence. Simple savings calculator --

DD1 is done now, if 529 can achieve an average of 6.5% growth for 10 years (18yo), no additional contributions needed. COA is increasing @5%, 12 years to college junior, $30,000/yr current-$120,000/4 years. Cost of Attendence for college in 12 years=$215,000. DD1 with $103,000 can grow for 10 years (18yo) @6.5% = $193,345. And if $500/mn contribution is done for next 10 years = $276,679. DD1 is done.

DD2 age 3, with $21,000 is looking at college $120,000 current COA in 17 yrs (age 20) or $275,000. DD2 receives contribution of $200/mn for 15years @6.5% growth = $113,755. DD1 is way short in college funding and either must have more monthly contribution, be more aggressive to get the higher ROI.

I am ignoring the most important rules: The closer you get to the day you start withdrawing-Reallocation becomes more important. Another is the first contribution will return more than the last- DD1 has 5 years on DD2. But DD2 has 15 years or investing vs just 10 years on DD1.

Again it may all be perspective and assumptions. I am not a great advocate of 529, although 529 may be an important part in funding college.

Run FireCalc, savings calculators, and college funding calculators. Vary the assumptions.
Therefore DD2's 529, needs to be ramped up.

LongPrime is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
31 year old, married with two young kids, looking to FIRE in 5 years alexbalex Hi, I am... 52 03-19-2012 02:17 PM
How much to RE today with two young kids and no pension/medical bens? bongo2 FIRE and Money 59 08-31-2009 08:27 AM
Alternatives to 529s for kids educations? Urchina FIRE and Money 70 03-04-2008 12:24 PM
"Two lines in the signature" doesn't equal two lines. Nords Forum Admin 4 02-09-2008 05:20 PM


All times are GMT -6. The time now is 10:12 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.