NextInLine
Recycles dryer sheets
I'm on the fence. My kid is 8 years old having another 10 years before big college expense. I have about $10K in Virginia 529 saving (parked in mutual fund). Having to know that my sister paid almost $100K for her daughter 4 years state college (tuition + room + all expenses), I know i have to step up more.
I have the options to continue the 529 saving or Prepaid.
I have enough saving to pay for the prepaid option $56K guarantee to cover 4 years tuition for state college no matter the inflation in 10 years. when it' s time, we only pay for room and board. that's more manageable situation. The $56K now is about 20% in average more than what it costs now. What I don't understand is that the formula the state set up the price. If my kid was 15 years old now, I have to pay only $58K (only $2K more to make up for 7 years of inflation).
Does it make sense to make a prepaid (for peace of mind) or continue to invest in mutual fund? I appreciate if anyone share your experience with this.
I have the options to continue the 529 saving or Prepaid.
I have enough saving to pay for the prepaid option $56K guarantee to cover 4 years tuition for state college no matter the inflation in 10 years. when it' s time, we only pay for room and board. that's more manageable situation. The $56K now is about 20% in average more than what it costs now. What I don't understand is that the formula the state set up the price. If my kid was 15 years old now, I have to pay only $58K (only $2K more to make up for 7 years of inflation).
Does it make sense to make a prepaid (for peace of mind) or continue to invest in mutual fund? I appreciate if anyone share your experience with this.