Hi, I've been reading here for just a few days and am so impressed at the depth of knowledge here, disciplined savers, helpful posts, etc 
I am hoping to "retire" sometime before 60, (39 now) but who knows? I am in the arts, and many of my colleagues never retire, feeling like we get paid to do something fun and satisfying. As a union member, I can practically count on keeping my job for life although the salary may vary slightly over the years. As a musician, we can count on some teaching income if we need. Our expenses are high now partly due to child care, but I hope we can trim them later once school starts for DD2. We live within our income, but hope to become more LBYM later. Then I can concentrate on ramping up the taxable accounts.
Our total tax deferred accounts add up to 530K. We are maxing out one 403b every year (17,500) and putting a few thousand in a SEP-IRA. I also get an employer contribution of about 11K into another 403b (no union pension though). I had previously done a non deductible trad IRA rollover but I don't understand how to do it now. Do I contribute every year then roll it over every year? Does that mean I end up with a separate account for every year? Apologies if this is elementary, but I never recovered from "pregnancy brain"... We also have 230K in taxable accounts and cash, 25K emergency fund, and almost 400K home equity.
A few questions, mainly how to estimate college costs, and other unknowables. Almost certainly both our kids will go to college, as nobody in our extended family has NOT gone through graduate school. I do see a lot of wisdom in encouraging them to work and pay some of their way through school, teaching them the cost and value of college. However, I also want them to have the freedom of graduating without huge loans. DH and I were lucky enough to have most of our educations funded, and I think we came out ok! So I would like to end up with enough to fully fund two undergrad degrees, with the possibility of paying another year or two each for grad school.
DD 1 is 8, with a 529 balance of 103K
DD 2 is 3, with a 529 balance of 21K
We are currently contributing 250 a month to DD 1 and 500 a month to DD 2. PA gives a state tax deduction. In addition, the grandparents have opened accounts and the balances there must be north of 10K, although I haven't asked lately. I hesitate to ask without sounding like I'm prying or pushing. Silly, I guess.
Should we continue on this path? We can contribute more, without hurting our lifestyle now. I vacillate between thinking we won't have enough and we'll have too much. I just have no idea how to estimate what net college costs will be for us. Based on income I doubt any need based aid will come our way, but DD 1 is very bright and maybe could get a merit scholarship. (Have yet to see how DD 2 is shaping up!) Will merit aid still exist in 10 years? Do some kids really pay sticker price at expensive schools? How does one select a private vs. public college, does it really hinge on campus visits? Will tuition continue to outpace inflation? If we end up with too much can I hang on the account in case we have grandkids someday? Do 529s become parts of estates?
Any comments or advice on any part of my post are welcome!
I am hoping to "retire" sometime before 60, (39 now) but who knows? I am in the arts, and many of my colleagues never retire, feeling like we get paid to do something fun and satisfying. As a union member, I can practically count on keeping my job for life although the salary may vary slightly over the years. As a musician, we can count on some teaching income if we need. Our expenses are high now partly due to child care, but I hope we can trim them later once school starts for DD2. We live within our income, but hope to become more LBYM later. Then I can concentrate on ramping up the taxable accounts.
Our total tax deferred accounts add up to 530K. We are maxing out one 403b every year (17,500) and putting a few thousand in a SEP-IRA. I also get an employer contribution of about 11K into another 403b (no union pension though). I had previously done a non deductible trad IRA rollover but I don't understand how to do it now. Do I contribute every year then roll it over every year? Does that mean I end up with a separate account for every year? Apologies if this is elementary, but I never recovered from "pregnancy brain"... We also have 230K in taxable accounts and cash, 25K emergency fund, and almost 400K home equity.
A few questions, mainly how to estimate college costs, and other unknowables. Almost certainly both our kids will go to college, as nobody in our extended family has NOT gone through graduate school. I do see a lot of wisdom in encouraging them to work and pay some of their way through school, teaching them the cost and value of college. However, I also want them to have the freedom of graduating without huge loans. DH and I were lucky enough to have most of our educations funded, and I think we came out ok! So I would like to end up with enough to fully fund two undergrad degrees, with the possibility of paying another year or two each for grad school.
DD 1 is 8, with a 529 balance of 103K
DD 2 is 3, with a 529 balance of 21K
We are currently contributing 250 a month to DD 1 and 500 a month to DD 2. PA gives a state tax deduction. In addition, the grandparents have opened accounts and the balances there must be north of 10K, although I haven't asked lately. I hesitate to ask without sounding like I'm prying or pushing. Silly, I guess.
Should we continue on this path? We can contribute more, without hurting our lifestyle now. I vacillate between thinking we won't have enough and we'll have too much. I just have no idea how to estimate what net college costs will be for us. Based on income I doubt any need based aid will come our way, but DD 1 is very bright and maybe could get a merit scholarship. (Have yet to see how DD 2 is shaping up!) Will merit aid still exist in 10 years? Do some kids really pay sticker price at expensive schools? How does one select a private vs. public college, does it really hinge on campus visits? Will tuition continue to outpace inflation? If we end up with too much can I hang on the account in case we have grandkids someday? Do 529s become parts of estates?
Any comments or advice on any part of my post are welcome!
