College Savings: Thoughts?

[Dromond]

hampshire?

ding ding ding

Believe it or not, sometimes those hippy jerkoff schools are actually good for something

[TyWebb]

I agree with Tonghands here - in tech, degrees mean essentially nothing. When we hire developers we don't even ask for resumes, just portfolios (websites or applications they've developed and the source code). Outside of a few very high tech universities (Standford, Cal Tech, MIT etc..) a college education will only slow his development.

That said, a college expereince is for more than a job, its a life experience and sometimes that is more important than the field of study he actually chooses.

For a great read on the philosphy and hard facts of saving/paying for college, buy this book. Written by a former professor and friend, it is a real eye opener and a very enjoyable read.

Make Your Kid A Millionaire

[P_McPoser]

Meh I Paid my own way through and it made me appreciate it more.

[13]

i have a question for those that "paid their way"

did you take out loans or did you pay it all out-of-pocket?

[TyWebb]

i have a question for those that "paid their way"

did you take out loans or did you pay it all out-of-pocket?

I took out loans for the whole show. I worked nearly fulltime in school, but that money was really only enough for food, rent, and interest on the loans (I'd didn't qualify for interest free/deferred loans).

IMO, situations like mine were most difficult. My folks do pretty well, but beleive that their kids should pay 100% of college, no exceptions. That didn't bother me a bit, but their solid financial situation meant that I qualified for no grants, financial aid or even interest deferred loans. Oh well...only 5 more years of payments left!

[fez]

ding ding ding

Believe it or not, sometimes those hippy jerkoff schools are actually good for something

i always liked taking classes at hampshire. and hampshire halloween is responsible for the demise of more than a few of my brain cells.

had this conversation at the end of one semester taking some sort of economics class at hampshire:

fez: uh, yeah, i'll be needing a grade
hampshire prof: oh yeah, you go to UMass right?
fez: yeah
hampshire prof: well ok, what do you want?
fez: how about an A?
hampshire prof: do you really feel you deserve an A?
fez: ok, B+ then.

[Dromond]

i always liked taking classes at hampshire. and hampshire halloween is responsible for the demise of more than a few of my brain cells.

had this conversation at the end of one semester taking some sort of economics class at hampshire:

fez: uh, yeah, i'll be needing a grade
hampshire prof: oh yeah, you go to UMass right?
fez: yeah
hampshire prof: well ok, what do you want?
fez: how about an A?
hampshire prof: do you really feel you deserve an A?
fez: ok, B+ then.

Bwahahaaa. That's pretty classic. I'll have to share that with my coworkers. (Half of them are hampshire grads as well. I know, it's hard to believe that we all have actual jobs.)

[jerlane]

Bumping this ancient thread. There are probably more recent threads but this is the one that came up in my search. We are a bit behind the ball to start a college fund for our kid, but better late than never. It seems like a 529 plan is the way to go, but is there anything more I need to know? Does it really matter who I start it with? This seems to be the state plan here in Minnesota. https://www.mnsaves.org/ I'm admittedly not a particularly savvy investor. Any help is much appreciated! (let me know if there's a better thread I should be in)

[riser4]

Put it all on red!

[Danno]

How old are you and how old are your kids? For me, a Roth IRA worked better but I'm old and will be past the roth retirement age when I will need the money.

Beyond that, there isn't one right way to do "college savings", because it ultimately comes down to not what vehicle you use (529 or Roth or whatever) but how you choose to invest the money. See the stock market crash thread for the clear consensus on how to do that (hint, not too far from riser's suggestion).

[XXX-er]

I told my sons mom and dad split up fucked up and there is no money so you better be smart and get a scholarship





at some point in ths HS I asked junior what he is up to and he was teaching old people to use computers becuz you can not just be smart you need to be a good citezen to get that free money




SO junior had skin in the game cuz he was told straight out there was NO money SO he got 25k in scholarship and another 15k thru a 5 yr engineering program on a coop program so including the Coop University cost him zero





In the last year of uni I told him there actualy was some money i had never mentioned and he was not sure how to spend it but IME COOP is where its at not only was he making a prorated 50K a year at learning the engineering gig he was making contacts





every oil company where he did the coop offered him a job so he had a job right out of uni where he still is and he was way ahead of many uni friends

[jerlane]

How old are you and how old are your kids? For me, a Roth IRA worked better but I'm old and will be past the roth retirement age when I will need the money. Beyond that, there isn't one right way to do "college savings", because it ultimately comes down to not what vehicle you use (529 or Roth or whatever) but how you choose to invest the money. See the stock market crash thread for the clear consensus on how to do that (hint, not too far from riser's suggestion).

I am 53 and my son is 11, in 5th grade. It is my understanding that our income is over the limit for investing in a Roth. I have never looked to deeply in a backdoor Roth. Seems like the tax benefits of the 529 are good, no? I do have a chunk of change set aside to start the fund. I am not sure about putting it all on red. Snipes said to always bet on black.

[skaredshtles]

I am 53 and my son is 11, in 5th grade. It is my understanding that our income is over the limit for investing in a Roth. I have never looked to deeply in a backdoor Roth. Seems like the tax benefits of the 529 are good, no?

Depends on what your state does WRT 529 tax benefits.

[irul&ublo]

You can always set up a 52[emoji[emoji642]45] in another state.


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[californiagrown]

I am 53 and my son is 11, in 5th grade. It is my understanding that our income is over the limit for investing in a Roth. I have never looked to deeply in a backdoor Roth. Seems like the tax benefits of the 529 are good, no? I do have a chunk of change set aside to start the fund. I am not sure about putting it all on red. Snipes said to always bet on black.

I do not understand why there is an income limit on a Roth, but the Backdoor loophole allows you to very easily have a Roth... just a year delayed each time on your contribution. Makes zero sense to me. Regardless, you should absolutely look into it, its really not difficult.

i live in a state with no state income tax, therefore there is no tax benefit to using my states 529. If your state has income tax, then you would reduce your (state) taxable income by the amount you put into your state's 529 plan each year. Nevada and Utah are the two 529s that usually get talked about with the lowest fees and best performance... but ultimately if your state has income tax, it would be best to just use your state's 529 plan. Then your kid can use that money tax free for college and college related stuff later in life.

Another option is to buy a condo in a college town that you think your kid might be going to, renting it out to college kids through a rental agency, giving your kid a "free" place to stay during college and then letting him either cash out the equity after graduation, or continuing to rent it out.

[singlesline]

529 plan tax benefits are mediocre.

But Roth IRA has limited contributions (and the backdoor is not an option for everyone)...and you might also be planning to use it for your own retirement. You can't make one in your kids name (they need income to contribute), so you are robbing from your ability to use it for yourself.

I've always found 529s to sound kinda lame. They work for people who wouldn't otherwise save and need a little help making it happen, but the benefits (and restrictions) are kinda weak. If you only have it for 10 years and invest conservatively, you don't save a lot.

They do have some advantages when it comes to financial aid and the FAFSA though. They don't get counted at full value and you can play games where you make the custodian of the 529 a trusted friend or family member...then it doesn't get counted AT ALL in the FAFSA. If you can't do that...DO NOT put the 529 in the child's name. Parent-owned accounts (with the child as a beneficiary) get much better treatment than child-owned accounts.

edit: I forgot that you can now roll unused 529 funds into an IRA for the kid in the future. That makes it a lot more appealing.