I am in a similar situation with a 17 month old and a 3 year old and use a simple approach. I have 529 plans for the kids that use a combination of the vanguard s&p 500 index and total bond market index. You can invest directly in the vanguard funds if a 529 doesn't meet your needs. I feel like these funds provide a broad range of diversity for a 17 to 21 year time horizon with very little monitoring. I will increase the bond allocation weight as the kids get older looking to be 90 percent or more in bonds when they are 16-17 years old.
As a side note to those for/against 529s, paying off mortgages before college, etc - I think several posts have fallen into the one size fits all trap. There are situations when saving for college in a 529 and maintaining a mortgage makes the best financial sense due to tax implications, w*rk situations (e.g., some people have employer subsidized mortgages), etc. There are other situations when paying off the mortgage is better or when a 529 doesn't make sense. There are too many variables to say that one approach is always better.
Actually spouse and I are the service academy alums; our kid (after years of debate) went NROTC at Rice. NROTC (and USNA) seem a heckuva lot easier to get into than Rice... most of her NROTC unit is made up of mids from colleges around Rice.congrats to your kid which got into a service academy- that is not easy, good for them.
It may not be real communication for our generation, but it works quite well for their generation.As for schools using other approaches to cut costs, how about professor benefits? If colleges start requiring web based training (self paced training) for more than maybe 5% of credits taken, that IMO is defeating the reason for college, which is human interaction.
So much of communication is non verbal. And so much of the communication done by teens these days is texting, twittering and checking someone's FB status. None of that is real communication which translates well into w*rking.
Anything less is not acceptable (to me).
529s still have to be used for educational purposes, which makes it difficult to tap the money (without penalties) if a kid wants to skip college for self-employment or other non-traditional certifications/occupations. OTOH an "education savings bond" can be used for anything if the tax is paid... it's only tax-free when redeemed for educational purposes.The 529 is probably the way to go. I have been cautious with any plan which 'trapped' the money into a one-purpose only plan.
Right. Why should any educator be paid what we pay the football coach? [FONT="][/FONT]
Salaries At UW are on line
UW System Salaries Search
The president makes 414,000
Reilly, Kevin P President $414,593
The Dean of the well regarded law school makes about 300,000
Davis, Kenneth B JrDeanMadisonLaw School $304,436
Now in our Medical school the dean is a praciticing physician who gets paid for the patients. that may explain the $900.000
Nevertheless, he was the second most highly compensated public university president in the nation, at $888,000 for 2007-2008.[3] In addition, he received $200,000 compensation for serving on the board of Expeditors International and $140,000 for serving on the board of Weyerhaeuser, giving him a total annual compensation of over $1.2 million.
Salary: Emmert was the nation's second-highest-paid public university president, with a salary of $906,500. He also collected an additional $340,000 in cash and stock from sitting on two corporate boards. That level of compensation put him under increasing fire as the state budget hit hard times and the UW faced severe cutbacks. When he and other senior leaders announced in February that they would donate 5 percent of their salaries to student scholarships, some considered the gesture too little, too late.
no I agree the football coaches are overpaid as well. notice i said 'state employee'.
no state employee should make more than the governor.
Custodial accounts count towards financial aid, since the account is technically an irrevocable gift to the child, even though in most states the kid can't get the money until age 21.
I have a couple 529 plans for my kids, we fund them monthly.
I guess it depends on what you are trying to achieve. If an expensive private college is in their future, I would load up on 529, because it will help with financial aid. A tax-efficient mutual fund account would work if financial aid is not a big concern.
I have seen firsthand a few disasters with custodial account................so I don't load those up..........
what do you consider an expensive school? I am paying about $1500/month and I consider that to be expensive but it is not really in the grand scheme of things.