So far I’ve put aside about $65k for three grandkids, starting at $20k/kid when born. Plan to continue to add to their 529 plans.
How does one convince grandpa to do this? My DF is multi-millionaire but "doesn't believe in 529s"
What would you suggest to a stubborn ole man with too much money?
Curiosity only. Other than Architecture, what degree plans are now five years?
Nothing. But I've been paying anyway -
My step son needed some help and I know my step daughter will too. She was admitted to UCLA school of nursing and does have a 529, but only 30 grand in it, so that ain't gonna make it past year 1.
I've got tons of younger cousins and their kids, I think, could be made beneficiary on some part or all of the leftover 529 funds. I thought about approaching the parents and doing a deal where I would pay the U and they would pay me. Sounds illegal though, hehe!
So of the $50k stuck, the original principal, $25k comes out tax and penalty free. If I pulled the rest of it out at 28% marginal tax rate, plus the penalty, I'd only get $15k (rough numbers) for a total of $40k. What if I was paid $45k to pay out $50k. My cousin and I would each save $5k. Of course I'd never do it unless it was 100% legal.
I feel like such an outlier. It was over 20 years ago when our kids went to college and we had saved about $20,000 each. They both knew that would cover tuition and books at our local state university. Tuition and books usually ran around 1800 a semester. We gave them the balance of the $2500 each semester for expenses. They mostly lived at home. We told them any scholarships they got, they could use for tuition and keep the money we saved. Our son got about 1/2 his tuition paid by scholarship and our daughter had a full academic scholarship. They both bought used cars with the money we saved. They didn’t have any student loans. Both are very successful and we are very proud of them.
I was recently hanging out with some successful, professional friends and was surprised to hear they each have ~$200k/kid saved in 529's for kids who are aged 8 - 13. I have ~$100k saved for each kid in that age range, and figured I'd see how life turns out to determine the rest, assuming more is required. I'm curious how much others on this thread who have youngish kids have put aside specifically for college. (And I have no idea how to create a survey, so if someone else wants to add one that'd be fine.)