SecondCor521
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Hi all.
I am interested in wisdom and insight from those of you who have navigated through a period of time where you have college funds set aside and the offspring in question has stopped out of college for a period of time.
I am in that situation now. I 100% love and support my offspring whether they choose to make the stoppage permanent and pursue their current alternate path (entrepreneur / sole proprietor), or if they choose to return at some point (they think they might someday), or if they choose some other path than those two (military, SAHP, whatever).
We did use a small portion (a few $K) of their 529 funds to help start their business. Their business is going really well for their first year, and they like it. I still have funds set aside in 529s for the rest of their college if that happens.
I have two other offspring, one of whom has finished college, and the other one is on track to graduate in six months or so, and funds are there for that.
My plan was always to distribute any excess to the kids after they were all graduated. That plan is on hold for now, because how much to distribute to each offspring depends on how much is left over and how much each spent, which can't yet be known as long as one hasn't finished - an unexpected and unconsidered weakness in the plan.
I don't have any specific questions really. I am sort of wondering how long to wait before deciding to change any plans vis a vis the 529s, I guess. The other two offspring are doing fine and don't really need their TBD portions of the leftover 529 funds. But it is something I've mentioned to them several times as my plan.
I also wonder how other folks navigated something like this. Did they change their plans in response to something like this? How long did they wait? How did it turn out?
There would be the possibility at some point of using even more of the 529 to invest in the business. It's been a year so far, and the business is growing on it's own pretty well and doesn't really need a capital injection. But it's an option to be considered. Does a large capital injection from the 529 into the business reasonably let me off the hook for paying for the rest of a degree later? I can see both sides of that argument.
Any thoughts and opinions welcome.
I am interested in wisdom and insight from those of you who have navigated through a period of time where you have college funds set aside and the offspring in question has stopped out of college for a period of time.
I am in that situation now. I 100% love and support my offspring whether they choose to make the stoppage permanent and pursue their current alternate path (entrepreneur / sole proprietor), or if they choose to return at some point (they think they might someday), or if they choose some other path than those two (military, SAHP, whatever).
We did use a small portion (a few $K) of their 529 funds to help start their business. Their business is going really well for their first year, and they like it. I still have funds set aside in 529s for the rest of their college if that happens.
I have two other offspring, one of whom has finished college, and the other one is on track to graduate in six months or so, and funds are there for that.
My plan was always to distribute any excess to the kids after they were all graduated. That plan is on hold for now, because how much to distribute to each offspring depends on how much is left over and how much each spent, which can't yet be known as long as one hasn't finished - an unexpected and unconsidered weakness in the plan.
I don't have any specific questions really. I am sort of wondering how long to wait before deciding to change any plans vis a vis the 529s, I guess. The other two offspring are doing fine and don't really need their TBD portions of the leftover 529 funds. But it is something I've mentioned to them several times as my plan.
I also wonder how other folks navigated something like this. Did they change their plans in response to something like this? How long did they wait? How did it turn out?
There would be the possibility at some point of using even more of the 529 to invest in the business. It's been a year so far, and the business is growing on it's own pretty well and doesn't really need a capital injection. But it's an option to be considered. Does a large capital injection from the 529 into the business reasonably let me off the hook for paying for the rest of a degree later? I can see both sides of that argument.
Any thoughts and opinions welcome.
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