Hi,
So we are beginning the process to adopt a newborn. All fees for the adoption are set aside and we have begun a 529 at Vanguard in our name until he/she arrives.
After reading bogleheads a bit, we are leaning toward lump sum 529 investing to set it and forget it to focus on other things. I like treating things as a one time debt to pay off like a home/car. We are starting with a lump sum of $70,000 before the child is 1. We are currently $15,000 invested with $4000-6000 per month going in until we reach $70,000. **What do you think of $70,000 as our target amount?**
After that, we will have this "extra" money. We had been throwing it in taxable accounts but I'm not sure we want to do that now.
Would you?
Take the $4000-6000 per month and put it in taxable? (Too much for roth and yes we max 401k's/hsa's -- can't do trad ira to roth conversions because of 401k to trad conversions we hold that will make a large chunk taxable--live and learn)
Take the $4000-6000 a month and put it on mortgage. Current mortgage is 29 years left, $400k at 3.375% (7/1 ARM that we are paying $1,000 extra on now). $4000 on top of current principal pay down will pay it off in 6-7 years and $6000 extra will pay it off in under 4 years
Another 529 plan. We plan to adopt about one year give or take after we finalize our first adoption and will lump sum another 529. Would you start this now?
OTHER-- have another idea for what you would do with the money?
We have about $470k in investments and besides our mortgage have no other debt. I'd like to reach FI and possibly RE in 10 years and we are on track with other savings/investments barring unforeseen catastrophic illness.
So, what would you do?
So we are beginning the process to adopt a newborn. All fees for the adoption are set aside and we have begun a 529 at Vanguard in our name until he/she arrives.
After reading bogleheads a bit, we are leaning toward lump sum 529 investing to set it and forget it to focus on other things. I like treating things as a one time debt to pay off like a home/car. We are starting with a lump sum of $70,000 before the child is 1. We are currently $15,000 invested with $4000-6000 per month going in until we reach $70,000. **What do you think of $70,000 as our target amount?**
After that, we will have this "extra" money. We had been throwing it in taxable accounts but I'm not sure we want to do that now.
Would you?
Take the $4000-6000 per month and put it in taxable? (Too much for roth and yes we max 401k's/hsa's -- can't do trad ira to roth conversions because of 401k to trad conversions we hold that will make a large chunk taxable--live and learn)
Take the $4000-6000 a month and put it on mortgage. Current mortgage is 29 years left, $400k at 3.375% (7/1 ARM that we are paying $1,000 extra on now). $4000 on top of current principal pay down will pay it off in 6-7 years and $6000 extra will pay it off in under 4 years
Another 529 plan. We plan to adopt about one year give or take after we finalize our first adoption and will lump sum another 529. Would you start this now?
OTHER-- have another idea for what you would do with the money?
We have about $470k in investments and besides our mortgage have no other debt. I'd like to reach FI and possibly RE in 10 years and we are on track with other savings/investments barring unforeseen catastrophic illness.
So, what would you do?