eastnortheast
Recycles dryer sheets
- Joined
- Oct 26, 2015
- Messages
- 124
We currently have 2 kids in their first year of college. We had set up 529 plans for them a while ago and have been pretty good about putting money in them on a monthly basis. We currently have enough in each 529 to fully fund ~ 2.5 years college for each. In addition, we have ~ $80K in various mutual funds that are not part of our retirement planning/calculations. I have had these funds for 20+ years. Used to contribute monthly to each of them, but stopped about 15 years ago and put the money into 529s.
My question is if the wise minds here think it is better to completely deplete the 529 plans and then tap into the mutual funds, or draw down a little from the mutual funds over the course of their college careers to supplement withdrawls from the 529s?
With the mutual funds, figuring the cost basis would be difficult. I dont have the old statements from years ago. I was (am) very much a buy and hold investor.
We are eligible for some un subsidized college loans, but I would prefer not to go down that route so have not taken any and do not plan to. We have taken the (minimal) subsidized loans we were eligible for as the payment and interest will be deferred until after the girls graduate.
I dont see my job situation undergoing any major changes, so family income should be relatively constant for the foreseeable future.
As an FYI, there are other kids in the family coming up on their college years and we have separate 529 plans for each of them. I would prefer to keep the accounts separate and not raid the younger ones plans to pay the older ones college costs.
Thanks for your thoughts!
My question is if the wise minds here think it is better to completely deplete the 529 plans and then tap into the mutual funds, or draw down a little from the mutual funds over the course of their college careers to supplement withdrawls from the 529s?
With the mutual funds, figuring the cost basis would be difficult. I dont have the old statements from years ago. I was (am) very much a buy and hold investor.
We are eligible for some un subsidized college loans, but I would prefer not to go down that route so have not taken any and do not plan to. We have taken the (minimal) subsidized loans we were eligible for as the payment and interest will be deferred until after the girls graduate.
I dont see my job situation undergoing any major changes, so family income should be relatively constant for the foreseeable future.
As an FYI, there are other kids in the family coming up on their college years and we have separate 529 plans for each of them. I would prefer to keep the accounts separate and not raid the younger ones plans to pay the older ones college costs.
Thanks for your thoughts!