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A beautiful gift from my parents today
06-21-2019, 08:32 PM
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#1
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Recycles dryer sheets
Join Date: Aug 2018
Posts: 91
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A beautiful gift from my parents today
My parents told us today that they will be purchasing a 2yr prepaid college plan for each of our 3 kids. They are still sub 10yrs old but it was such exciting news. We haven’t had any windfalls and some setbacks along our FI journey in the past few years so this is such a surprise and blessing.
We do have 529’s but they are minimally funded and we really had no formal plan for how to fund college.
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06-21-2019, 08:42 PM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Posts: 5,342
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How do you prepay for 2 years of college for 10 year olds? I don't get it.
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06-21-2019, 08:57 PM
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#3
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Recycles dryer sheets
Join Date: Aug 2018
Posts: 91
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The state offers a plan for covering in state tuition for children. It’s pro-rated based on age. U can pay a monthly amount till they are 18 or upfront.
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06-21-2019, 09:11 PM
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#4
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Moderator
Join Date: Nov 2014
Posts: 9,100
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Yes, we have the same thing in Michigan. It’s called MET or Michigan Education Trust. It provides a lot of flexibility in prepaying education. For example, I can buy a prepaid plan for my 13 year old grandson for a lump sum for about $80K to have full tuition paid at an in State university. There are also monthly plans and two year plans versus four year plans . . .
__________________
Every day when I open my eyes now it feels like a Saturday - David Gray
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06-21-2019, 10:10 PM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,263
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Quote:
Originally Posted by Beer-man
The state offers a plan for covering in state tuition for children. It’s pro-rated based on age. U can pay a monthly amount till they are 18 or upfront.
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What happens if the child's best choice is out of state? Of if the child choses not to attend college? Or joins the military?
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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06-21-2019, 10:29 PM
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#6
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Recycles dryer sheets
Join Date: Aug 2018
Posts: 91
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Quote:
Originally Posted by pb4uski
What happens if the child's best choice is out of state? Of if the child choses not to attend college? Or joins the military?
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All good questions but it is a gift at no cost to us and I don’t intend to question their reasons for choosing what they did. I’m grateful for their generosity and having the foresight to plan ahead.
These are reasons we chose to set up a 529 but haven’t had the ability to fund it as well as we intended.
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06-21-2019, 10:31 PM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,200
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Quote:
Originally Posted by Beer-man
All good questions but it is a gift at no cost to us and I don’t intend to question their reasons for choosing what they did. I’m grateful for their generosity and having the foresight to plan ahead.
These are reasons we chose to set up a 529 but haven’t had the ability to fund it as well as we intended.
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+1. It sounds like a wonderful gift.
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No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
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06-22-2019, 04:48 AM
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#8
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gone traveling
Join Date: Mar 2015
Posts: 3,508
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Quote:
Originally Posted by Beer-man
My parents told us today that they will be purchasing a 2yr prepaid college plan for each of our 3 kids. They are still sub 10yrs old but it was such exciting news. We haven’t had any windfalls and some setbacks along our FI journey in the past few years so this is such a surprise and blessing.
We do have 529’s but they are minimally funded and we really had no formal plan for how to fund college.
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That is indeed a beautiful gift. Your parents are very thoughtful people.
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06-22-2019, 05:09 AM
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#9
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Recycles dryer sheets
Join Date: Jan 2013
Posts: 380
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Very lovely gesture.
I looked at the website for what I believe to be op’s state and it seems all the issues raised are addressed in the plan so the money will not be lost
https://www.myfloridaprepaid.com/prepaid-plans/
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06-22-2019, 06:04 AM
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#10
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,263
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__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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06-22-2019, 06:16 AM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2016
Posts: 9,414
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That is great regardless of the terms what a wonderful gift.
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06-22-2019, 06:37 AM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2008
Location: On a hill in the Pine Barrens
Posts: 9,682
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Quote:
Originally Posted by Beer-man
My parents told us today that they will be purchasing a 2yr prepaid college plan for each of our 3 kids. They are still sub 10yrs old but it was such exciting news. We haven’t had any windfalls and some setbacks along our FI journey in the past few years so this is such a surprise and blessing.
We do have 529’s but they are minimally funded and we really had no formal plan for how to fund college.
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Your parents are wonderful people. What a loving gesture!
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06-22-2019, 06:48 AM
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#13
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Thinks s/he gets paid by the post
Join Date: Dec 2017
Posts: 1,593
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Quote:
Originally Posted by Jerry1
Yes, we have the same thing in Michigan. It’s called MET or Michigan Education Trust. It provides a lot of flexibility in prepaying education. For example, I can buy a prepaid plan for my 13 year old grandson for a lump sum for about $80K to have full tuition paid at an in State university. There are also monthly plans and two year plans versus four year plans . . .
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I picked the alternate MESP (Mich Educational Savings Program) 529 thinking that investments would outperform and that the youngsters might prefer out of state. They did stay in Michigan for college but I guess I could have offered them the alternative of paid instate tuition or partial payment of out of state + student loans.
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06-22-2019, 06:52 AM
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#14
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gone traveling
Join Date: Sep 2003
Location: DFW
Posts: 7,586
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Nothing better than the gift of an education!
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06-22-2019, 06:58 AM
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#15
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,263
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Quote:
Originally Posted by street
That is great regardless of the terms what a wonderful gift.
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Agree... just want to make sure OP understands possible outcomes.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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06-22-2019, 07:08 AM
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#16
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Thinks s/he gets paid by the post
Join Date: Jan 2018
Location: Elyria, OH
Posts: 1,937
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Quote:
Originally Posted by pb4uski
Yes, but if the student doesn't attend college and there is no qualified family member to transfer the benefit to, you get a refund but no interest. That would be us... DD had already completed college when DS decided not to attend college.
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+1
Although I agree it's a wonderful gesture, I think unrestricted gifts are much better.
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06-22-2019, 07:10 AM
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#17
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Moderator Emeritus
Join Date: Aug 2007
Location: Northern Illinois
Posts: 16,543
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Education is the gift that keeps on giving! Your parents are awesome!
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06-22-2019, 07:10 AM
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#18
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Recycles dryer sheets
Join Date: Mar 2013
Posts: 214
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That's awesome! What a great gift!
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06-22-2019, 07:18 AM
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#19
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,003
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We gave each of our five grandchildren a two-year prepaid tuition plan on their first birthdays. One unintended benefit was that it motivated their parents to start saving to pay for the other two years.
__________________
Numbers is hard
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06-22-2019, 07:36 AM
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#20
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: South central PA
Posts: 3,469
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My dad funded his grandkids’ post-high school education as well. Ours only partially. My sister’s kids, 100%. Great gift. Better than direct money. My dad did not live to see any of his grandkids graduate high school, however.
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