Urchina
Full time employment: Posting here.
Hi, new to the boards. My DH and I just did the math and realized that with some belt-tightening we can semi-FIRE in about 8 years. We'll be 41 and 42, respectively, and our kids will be 10 and 8, respectively.
We've been saving for their educations in a taxable high-interest savings account, but now have enough saved to start looking at investments with a better return. By all accounts our state 529 (California) is a pretty good one, but my concern is the penalty you pay (in addition to taxes) on money withdrawn if your child doesn't go to college. I think this penalty would probably erase any gains and might even erase some principal. I'd like to keep our options open -- maybe we have an artist or entrepreneur here, and I'd like to keep the money available and maximized for their future dreams.
Our goals for this savings are:
1. Flexibility of final use (college or trade school or art school or small business, etc.)
2. We don't want to hand the money over, carte blanche, when the kids turn 18 or 21 or even 25. We'd like final control and say over where the money goes and at what time.
3. Tax-advantaging.
Any suggestions?
We've been saving for their educations in a taxable high-interest savings account, but now have enough saved to start looking at investments with a better return. By all accounts our state 529 (California) is a pretty good one, but my concern is the penalty you pay (in addition to taxes) on money withdrawn if your child doesn't go to college. I think this penalty would probably erase any gains and might even erase some principal. I'd like to keep our options open -- maybe we have an artist or entrepreneur here, and I'd like to keep the money available and maximized for their future dreams.
Our goals for this savings are:
1. Flexibility of final use (college or trade school or art school or small business, etc.)
2. We don't want to hand the money over, carte blanche, when the kids turn 18 or 21 or even 25. We'd like final control and say over where the money goes and at what time.
3. Tax-advantaging.
Any suggestions?