My son is 14 and will be headed to college in about 4 years. I purchased 60k in ibonds in Sept 2000 and always figured I would use them to help pay for his college. However, as college gets closer I realize I may want to keep the i-bonds since they have what I consider to be a very good safe return.
I also plan to retire around the time he heads to school at the age of 54.
My current assets are 650k in retirement accounts.
360k in after tax acounts and approx 450k in home equity(no mortgage).
Combined income between spouse and myself is 140k. We currently max out retirement contributions including catch up contributions for myself.
I will receive a non-cola pension of approx 27k per year when I retire. Currently my wife plans to keep working a few years after I retire but that may change. My annual expenses should be around 70k in retirement and I believe I should be ok.
My son is an excellent student, but I do not know if he will get any scholarships. I am figuring not at this point. I have always told him I would try and pay around 50 percent of his college and he should expect to pay the rest. This may change depending on how much I have once it comes time to pay.
My question is since I may hold on to the ibonds , is there any benefit to funding a 529 at this late date with some cash from my aftertax assets? Or should I just keep things as is and expect to pay my portion of his college expenses out of my after-tax assets.
Thanks in advance for any advice,
Mike
I also plan to retire around the time he heads to school at the age of 54.
My current assets are 650k in retirement accounts.
360k in after tax acounts and approx 450k in home equity(no mortgage).
Combined income between spouse and myself is 140k. We currently max out retirement contributions including catch up contributions for myself.
I will receive a non-cola pension of approx 27k per year when I retire. Currently my wife plans to keep working a few years after I retire but that may change. My annual expenses should be around 70k in retirement and I believe I should be ok.
My son is an excellent student, but I do not know if he will get any scholarships. I am figuring not at this point. I have always told him I would try and pay around 50 percent of his college and he should expect to pay the rest. This may change depending on how much I have once it comes time to pay.
My question is since I may hold on to the ibonds , is there any benefit to funding a 529 at this late date with some cash from my aftertax assets? Or should I just keep things as is and expect to pay my portion of his college expenses out of my after-tax assets.
Thanks in advance for any advice,
Mike