College costs

I like the idea somebody mentioned of giving the kids a set amount that you will pay. Anything above that, the kid pays. If they come in under budget, they can have the balance. My wife's parents did that exact thing for our wedding and guess what, we figured out quickly how to put on a cheap (yet fun) wedding and stash the rest in the bank, which we later used to help us make a down payment on a house (back when 5% was sufficient). It's amazing how your perspective changes when you get to keep the "change."

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Originally Posted by XXX-er

apparently tuition in Quebec is very cheap but you gotta probably be Canadian, establish a 6month quebec residence, probably speak french and your body has to handle all that poutine

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Cheaper if you are Canadian but the international student vigorish still makes it lower than the local U in most states. I'm a US citizen and I spent 4 lovely years in Montreal in the 70's and my son went to Dalhousie in Halifax from 07 - 11. International student Tuition in both cases was lower than In-state rates for UMass.

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Originally Posted by Perdador729

I'm looking at like $400K for two kids if they go to private schools. Too much.

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I will probably be 500-600 in before they go to college. 400-500 for undergrad.

It's either that or hookers and blow.

https://img.memecdn.com/amirite_o_734000.jpg

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Originally Posted by Danno

I think a blanket statement like "529 is the best option" isn't good advice. Like virtually all financial advice, it's situation dependent. Which is not to say that 529s aren't good things and the best option for many people, but they most certainly are not the best option for me, because of my age (or more accurately, because of how old I will be when my kiddo is going to college).

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Personally, there's no way I'd do a 529. I'd like to set aside money into a mutual fund that the kids don't really know about. For one, the average yields are better, but also that way if my kids go to school and I have to pay for it, we can do it, BUT if they pursue a trade, don't go to college, or get it paid for via scholarship, military, etc., then I can pocket it. I prefer to refer to my kids' college savings as "Daddy's Lamborghini Fund." I am not exactly going to be disappointed if I don't have to pay for their college. Haha.

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Originally Posted by AustinFromSA

Personally, there's no way I'd do a 529. I'd like to set aside money into a mutual fund that the kids don't really know about. For one, the average yields are better, but also that way if my kids go to school and I have to pay for it.. .

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Why would the yields (returns) be any different? We used Nevada's plan, which is through Vanguard, and you can select any holding you want from Vanguard's offerings.

Using a 529 vs separate earmarked taxable account: yes on restrictions on withdrawals - OTOH, if you use the 529 for education expenses, it is tax sheltered growth.

Yeah, and your kids won't give a shit when Dad is wearing diapers and needs elderly care. Your texass is showing.

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Originally Posted by jackstraw

Yeah, and your kids won't give a shit when Dad is wearing diapers and needs elderly care. Your texass is showing.

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Meh. Not their problem. I totally plan on winding up in some awful nursing home, penniless and neglected. Wouldn't have it any other way.

Yeah, the yields should be the same. But the Roth is a better vehicle for me than a 529, and likely is better for anyone who will turn 60 during their kid's time in college. The money doesn't get counted on the FAFSA, and if they don't go to school the money is yours. If they do, you wait until after they have finished their last FAFSA, then use the Roth to pay off existing loans.

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Originally Posted by AustinFromSA

Personally, there's no way I'd do a 529. I'd like to set aside money into a mutual fund that the kids don't really know about. For one, the average yields are better, but also that way if my kids go to school and I have to pay for it, we can do it, BUT if they pursue a trade, don't go to college, or get it paid for via scholarship, military, etc., then I can pocket it. I prefer to refer to my kids' college savings as "Daddy's Lamborghini Fund." I am not exactly going to be disappointed if I don't have to pay for their college. Haha.

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529 withdrawal rules have allowances to roll the money out if the kid gets a scholarship, and the tax-advantaged growth is worth a lot.

So if the kids get that full ride ski scholarship I can move the money out? I presume it becomes taxable income? Or can I roll it into another tax sheltered growth (403b etc).


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Originally Posted by detrusor

So if the kids get that full ride ski scholarship I can move the money out? I presume it becomes taxable income? Or can I roll it into another tax sheltered growth (403b etc).


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I think if kid 1 doesn't use it, you can roll it to kid 2. If both of them get things paid for, you can withdraw it and it becomes taxable, but any sort of penalty is waived.

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Originally Posted by Sirshredalot

I think if kid 1 doesn't use it, you can roll it to kid 2. If both of them get things paid for, you can withdraw it and it becomes taxable, but any sort of penalty is waived.

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Correct. You can also leave it and use it for continuing education for yourself, say if you wanted to go to school to learn basket-weaving when retired.

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Originally Posted by AustinFromSA

Personally, there's no way I'd do a 529. I'd like to set aside money into a mutual fund that the kids don't really know about. For one, the average yields are better, but also that way if my kids go to school and I have to pay for it, we can do it, BUT if they pursue a trade, don't go to college, or get it paid for via scholarship, military, etc., then I can pocket it. I prefer to refer to my kids' college savings as "Daddy's Lamborghini Fund." I am not exactly going to be disappointed if I don't have to pay for their college. Haha.

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You need to speak to somebody with a clue my man.

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Originally Posted by Tippster

Correct. You can also leave it and use it for continuing education for yourself, say if you wanted to go to school to learn basket-weaving when retired.

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I've always wanted to pick up underwater basket weaving.

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Originally Posted by Tippster

Correct. You can also leave it and use it for continuing education for yourself, say if you wanted to go to school to learn basket-weaving when retired.

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Could I use it for an independent study into the lives of asian prostitutes? Pretty sure I would find that to be an enriching experience.

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Originally Posted by Woolly the Mammoth

Could I use it for an independent study into the lives of asian prostitutes? Pretty sure I would find that to be an enriching experience.

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If it's an accredited program then yes. Otherwise you'll take a small tax hit.

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Originally Posted by jackstraw

The whole system sucks and is broken.

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+1

This thread is mind bending.

^^ Yeah, the costs are unreal now in the USA. No way can most unrich families afford it anymore, when that was not such a big deal 30 yrs ago. We better figure out how to fix it, too, or we will end up a nation of uneducated morons, if we are not there already. Sorry, don’t mean to insult those without a college degree.

How can this system not break down soon? How can that many families out there pay +$60k a year for an average private school? And $40k a year for a shit in-state where they spend more time high than in class?

Spending 500k for a upper level private education isn't that big of an expense over a 85 year life span.

16 bucks a day.

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Originally Posted by Bobby Stainless

Spending 500k for a upper level private education isn't that big of an expense over a 85 year life span.

16 bucks a day.

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Yeah, but you know that up and us are the only developed countries where college is not free?

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Originally Posted by I've seen black diamonds!

Diplomas from 4 year schools with recognizable names will be worth even more than they are now because there will be even more competition to get in and fewer people who can afford tuition. Status isn't going away. But enrollment in non-brand-name schools will plummet. Transfers from community colleges to very good schools will go up.

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screw that, judging form the people in the news that went to "recognizable" schools I'd rather hire no name grads any day of the week
that being said if money right out of the gate is the goal as mentioned above get 'em in a trade school and they'll be golden

oh, and to the people claiming that tuition in in PQ is cheap, yes it is, thatnks to the rest of Canada paying for it...transfer payments for the win

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Originally Posted by AdironRider

From what I hear, your best plan is to put everything into retirement accounts and show as little assets as possible on the FAFSA, then pray for financial aid.

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From our experience, we fall squarely in the middle class hole. We make too much to get any money and not enough to actually afford it.

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Originally Posted by Obstruction

Cheaper if you are Canadian but the international student vigorish still makes it lower than the local U in most states. I'm a US citizen and I spent 4 lovely years in Montreal in the 70's and my son went to Dalhousie in Halifax from 07 - 11. International student Tuition in both cases was lower than In-state rates for UMass.

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My kids are dual citizens. The oldest just finished her first year at UNB Fredericton. I spent about $15K USD give or take on everything including spending money and travel. She got a $1500 CAD scholarship from the school for her HS grades and a $1000 USD one from a local org. Minutes after she accepted at UNB, Dal offered her $4500 CAD. However, she didn't really like Dal, they don't have her exact program with the specialty she wants, and she applied there only because I said she had to apply to more than one school. She really, really, really likes UNB. I mean it looks nice and all, however I will never understand her level of attachment for it. It's just a school. Hopefully she gets a good academic scholarship this year from UNB as she has a 4.3 GPA. It is cruel that they don't announce that until mid July. And she won some writing contest, but can't seem to tell me how much $$$. Of course I have a kid going into 11th and a kid going into 8th. I am screwed.

the costs i'm hearing are usually under 20K a year for a Canadian Uni, almost nobody goes to an American school unless they got a sport scholarship or its for something unusual not offered in Canada