Kid-havers Poll: how much money, if any, are you putting in a 529 every month
| Self-absorbed blue new version | 01/18/18 | | spectacular godawful electric furnace lay | 01/18/18 | | Self-absorbed blue new version | 01/18/18 | | Fragrant digit ratio stage | 01/20/18 | | Khaki Floppy Milk | 01/20/18 | | racy mother principal's office | 01/22/18 | | Thirsty dashing spot filthpig | 01/18/18 | | Marvelous navy son of senegal | 01/18/18 | | Flatulent exhilarant stead | 01/18/18 | | Hairraiser topaz messiness fanboi | 01/18/18 | | Self-absorbed blue new version | 01/18/18 | | Hairraiser topaz messiness fanboi | 01/18/18 | | Chestnut Turdskin | 01/18/18 | | Self-absorbed blue new version | 01/18/18 | | Elite coffee pot stag film | 01/18/18 | | Chestnut Turdskin | 01/18/18 | | Marvelous navy son of senegal | 01/18/18 | | Elite coffee pot stag film | 01/18/18 | | Marvelous navy son of senegal | 01/18/18 | | Elite coffee pot stag film | 01/18/18 | | Useless Orchid Partner Yarmulke | 01/18/18 | | Histrionic Theater Stage Affirmative Action | 01/21/18 | | Hairraiser topaz messiness fanboi | 01/18/18 | | spruce locus | 01/18/18 | | Marvelous navy son of senegal | 01/18/18 | | Out-of-control background story | 01/18/18 | | flushed roommate | 01/18/18 | | Thirsty dashing spot filthpig | 01/20/18 | | Razzle charcoal den | 01/20/18 | | Chestnut Turdskin | 01/20/18 | | Grizzly slap-happy senate roast beef | 01/20/18 | | Chestnut Turdskin | 01/20/18 | | Grizzly slap-happy senate roast beef | 01/20/18 | | Tripping Corner Goal In Life | 01/20/18 | | Lime plaza cumskin | 01/20/18 | | Irradiated maroon church | 01/20/18 | | Self-absorbed blue new version | 01/20/18 | | Chestnut Turdskin | 01/20/18 | | Irradiated maroon church | 01/20/18 | | Histrionic Theater Stage Affirmative Action | 01/21/18 | | Odious crawly institution cuck | 01/21/18 | | sapphire thriller menage | 01/21/18 | | sapphire thriller menage | 01/21/18 | | titillating stubborn theatre | 03/26/18 | | garnet apoplectic orchestra pit karate | 01/20/18 | | stimulating violet brethren house | 01/20/18 | | Chestnut Turdskin | 01/20/18 | | Carnelian Abnormal Trailer Park | 01/20/18 | | Chestnut Turdskin | 01/20/18 | | titillating stubborn theatre | 03/26/18 | | Cyan exciting juggernaut | 01/20/18 | | Chestnut Turdskin | 01/20/18 | | Cyan exciting juggernaut | 01/21/18 | | charismatic persian | 01/20/18 | | Self-absorbed blue new version | 01/20/18 | | Chestnut Turdskin | 01/20/18 | | Beady-eyed Jet Theater Mad-dog Skullcap | 01/20/18 | | Chestnut Turdskin | 01/20/18 | | Beady-eyed Jet Theater Mad-dog Skullcap | 01/20/18 | | Chestnut Turdskin | 01/20/18 | | Beady-eyed Jet Theater Mad-dog Skullcap | 01/20/18 | | charismatic persian | 01/20/18 | | Chestnut Turdskin | 01/20/18 | | sapphire thriller menage | 01/21/18 | | Irradiated maroon church | 01/21/18 | | Hairraiser topaz messiness fanboi | 01/21/18 | | Chestnut Turdskin | 01/21/18 | | sapphire thriller menage | 01/21/18 | | Marvelous navy son of senegal | 01/20/18 | | Chestnut Turdskin | 01/20/18 | | Irradiated maroon church | 01/20/18 | | Marvelous navy son of senegal | 01/20/18 | | Chestnut Turdskin | 01/20/18 | | Marvelous navy son of senegal | 01/20/18 | | Irradiated maroon church | 01/21/18 | | Irradiated maroon church | 01/21/18 | | Violent hospital | 01/21/18 | | Marvelous navy son of senegal | 01/21/18 | | Marvelous navy son of senegal | 01/21/18 | | Hairraiser topaz messiness fanboi | 01/21/18 | | House-broken stirring station | 01/20/18 | | Marvelous navy son of senegal | 01/20/18 | | Cruel-hearted maniacal sanctuary | 01/20/18 | | Marvelous navy son of senegal | 01/20/18 | | Chestnut Turdskin | 01/20/18 | | Violent hospital | 01/21/18 | | Flatulent exhilarant stead | 01/20/18 | | Chestnut Turdskin | 01/20/18 | | Irradiated maroon church | 01/20/18 | | Violent hospital | 01/21/18 | | Hairraiser topaz messiness fanboi | 01/21/18 | | sapphire thriller menage | 01/21/18 | | Irradiated maroon church | 01/21/18 | | Hairraiser topaz messiness fanboi | 01/21/18 | | Irradiated maroon church | 01/21/18 | | Odious crawly institution cuck | 01/21/18 | | Carnelian Abnormal Trailer Park | 01/20/18 | | Frozen chad | 01/21/18 | | tan private investor coldplay fan | 01/18/18 | | Swashbuckling carmine nibblets resort | 01/18/18 | | Self-absorbed blue new version | 01/18/18 | | Marvelous navy son of senegal | 01/18/18 | | Thirsty dashing spot filthpig | 01/20/18 | | Histrionic Theater Stage Affirmative Action | 01/21/18 | | Concupiscible area circlehead | 01/18/18 | | Wonderful Turquoise Jew Hell | 01/18/18 | | Razzle charcoal den | 01/20/18 | | Elite coffee pot stag film | 01/18/18 | | Useless Orchid Partner Yarmulke | 01/18/18 | | Elite coffee pot stag film | 01/18/18 | | House-broken stirring station | 01/18/18 | | pearly kitty | 01/18/18 | | silver adventurous whorehouse quadroon | 01/18/18 | | Useless Orchid Partner Yarmulke | 01/18/18 | | sapphire thriller menage | 01/21/18 | | Useless Orchid Partner Yarmulke | 01/18/18 | | charismatic persian | 01/18/18 | | arousing beta wrinkle | 01/18/18 | | Excitant ticket booth liquid oxygen | 01/18/18 | | Zippy Pale Piazza Shitlib | 01/18/18 | | Elite coffee pot stag film | 01/18/18 | | Irradiated maroon church | 01/20/18 | | Grizzly slap-happy senate roast beef | 01/18/18 | | chest-beating mewling genital piercing | 01/18/18 | | Boyish haunting point | 01/18/18 | | Out-of-control background story | 01/18/18 | | Irradiated maroon church | 01/20/18 | | milky flickering kitchen toaster | 01/18/18 | | flushed roommate | 01/18/18 | | Elite coffee pot stag film | 01/20/18 | | House-broken stirring station | 01/20/18 | | Irradiated maroon church | 01/20/18 | | rough-skinned insecure clown gaming laptop | 01/20/18 | | Diverse useless brakes | 01/20/18 | | stimulating violet brethren house | 01/20/18 | | Wonderful Turquoise Jew Hell | 01/20/18 | | House-broken stirring station | 01/20/18 | | Passionate Azn Mediation | 01/21/18 | | Irradiated maroon church | 01/20/18 | | vibrant buff dragon location | 01/20/18 | | Diverse useless brakes | 01/20/18 | | charismatic persian | 01/20/18 | | flushed roommate | 01/21/18 | | Diverse useless brakes | 01/20/18 | | stimulating violet brethren house | 01/20/18 | | Diverse useless brakes | 01/20/18 | | Self-absorbed blue new version | 01/20/18 | | comical vengeful degenerate | 01/20/18 | | Elite coffee pot stag film | 01/20/18 | | Cyan exciting juggernaut | 01/20/18 | | Diverse useless brakes | 01/20/18 | | Irradiated maroon church | 01/20/18 | | Diverse useless brakes | 01/20/18 | | Filthy dilemma pervert | 01/20/18 | | Diverse useless brakes | 01/20/18 | | Filthy dilemma pervert | 01/20/18 | | Rebellious Bbw Halford | 01/20/18 | | Hairraiser topaz messiness fanboi | 03/26/18 | | sexy harsh box office | 01/20/18 | | Khaki Floppy Milk | 01/20/18 | | Rebellious Bbw Halford | 01/20/18 | | Khaki Floppy Milk | 01/20/18 | | Irradiated maroon church | 01/21/18 | | Bateful State | 04/24/18 | | Big brunch patrolman | 01/20/18 | | Irradiated maroon church | 01/21/18 | | amethyst talented masturbator university | 01/20/18 | | Elite coffee pot stag film | 01/21/18 | | Irradiated maroon church | 01/21/18 | | amethyst talented masturbator university | 01/21/18 | | Histrionic Theater Stage Affirmative Action | 01/21/18 | | Elite coffee pot stag film | 01/21/18 | | Histrionic Theater Stage Affirmative Action | 01/21/18 | | Histrionic Theater Stage Affirmative Action | 01/21/18 | | Self-absorbed blue new version | 01/21/18 | | Angry Gaped Doctorate | 03/26/18 | | Erotic aphrodisiac base knife | 03/26/18 | | Irradiated maroon church | 03/26/18 | | titillating stubborn theatre | 03/26/18 | | Shimmering Property Crotch | 04/24/18 | | Iridescent friendly grandma | 04/24/18 | | Self-absorbed blue new version | 08/07/18 | | multi-colored telephone | 12/15/19 |
Poast new message in this thread
|
Date: January 18th, 2018 10:56 PM Author: Hairraiser topaz messiness fanboi
How is avoiding a 15-23.8% cap gains tax “not that great of a deal”?
Don’t understand how somebody who is so financially illiterate writes articles for “finance blogs”
If either you or your husband plans to pay for any part of college (or private school k-12 under new tax plan), it is a no brainer to use a 529 plan.
(http://www.autoadmit.com/thread.php?thread_id=3864057&forum_id=2#35186777) |
|
Date: January 20th, 2018 9:34 AM Author: Chestnut Turdskin
First, you are speaking condescendingly, assuming I don’t have a clear rationale or understanding of what I say. Second, I don’t “write for financial blogs”. I am a personal finance expert, and go on the Today Show, ABC News, Bloomberg, get quoted regularly in Forbes, Inc, Entrepreneur, US News & World Report , etc. I also host financial radio and TV shows and will officially be a CFP in two months.
Now, as to your original question, it is you that is being financially illiterate if you don’t understand the alternatives to 529 plans. Their benefits are not utterly unique - in fact, unless you’re a top 1% earner, all of the same benefits can be had from a Roth IRA. If you are a top 1% earner, then fine, a 529 makes sense, but if you over- contribute and end up not needing all of the monies for qualified educational expenses, you’ll need to pay cap gains and income tax on it, anyhow. In your case, it sounds like you’ve over contributed if you already have $100k at age two. The kid will not need millions for his education, most states limit you to about 300k, and you’ll end up paying cap gains and taxes on the excess money, either way. It only makes sense for you to continue contributing if he’ll be attending private K-12 and you use up the money along the way, because compounding over time for college will create the same difficulty. Or, you’d better hope he has a sibling or other family member to whom you can roll-over/ gift the excess funds.
In short, 529 plans are really only of value to top earners who intend on contributing more than the Roth IRA limits per year, and wouldn’t benefit from education-related tax deductions, anyhow. For everyone else, just dip into your Roth for college tuition. If you’re saving enough that you can max out a 401k plus a Roth every year for retirement savings, then you’re likely in the top 1% earner category and would do well with a 529.
This is clearly an over-simplification of a complex topic and their are nuances which would alter my advice, such as minor tax rate implications, deductions, need-based financial aid, quality of 529 plans offered by your state, etc.
(http://www.autoadmit.com/thread.php?thread_id=3864057&forum_id=2#35195764) |
|
Date: January 20th, 2018 9:47 AM Author: Irradiated maroon church
What you are essentially saying is most people can’t save for both retirement and their kids college expenses, so they should cannibalize their retirement savings for college expenses.
The point of the 529 is to incentivize people to tighten their belts and save for both.
These middle class people you are referring to aren’t going to save too much in a 529 - they are much more likely to not save enough and have to take out predatory loans. Even if they did, they can move move the 529 to their grandchildren if they need to. Worst case they pay a penalty but benefit from tax deferral.
The hypothetical middle class family that saves too much, and has no grandchildren reflects a very small sample size.
Oh and Nutellas kids are almost certainly going to spend millions on their education. Most people on here would benefit. So saying “it’s not a great deal” and then clarifying that you only meant poor people isn’t really helpful. My guess is you also make enough where you should be contributing.
(http://www.autoadmit.com/thread.php?thread_id=3864057&forum_id=2#35195847) |
|
Date: January 20th, 2018 2:04 PM Author: Chestnut Turdskin
Your post is incoherent.
Most people on this site are not top 1% income earners. Almost everyone below that level should be fairly indifferent between a Roth or funding a 529 first. Since most people can’t do both, the better choice is the Roth, since the monies can be used for either purpose. You can not withdraw from a 529 for retirement purposes without penalties.
Most states cap 529s at about $300k. If youre high income and expect to need more than that, you should draw down contributions to your Roth second in order to achieve similar tax benefits.
(http://www.autoadmit.com/thread.php?thread_id=3864057&forum_id=2#35197256)
|
|
Date: January 20th, 2018 3:08 PM Author: Irradiated maroon church
You are accusing me of being incoherent?
You made some claim about how 529s are risky which I was debunking.
Now you say you should fund a roth before a 529. That’s a complicated question. Let’s say we take your example where you don’t have enough to do both. Let’s also say you actually need to use the entire balance to pay for college expenses. You will pay more tax using a Roth IRA to do this if you are withdrawing the amounts before 59 1/2, because you will pay tax on the earnings. For a 529, as long as it’s used for an approved expense, you don’t pay tax on the earnings. In addition, many states offer a deduction for the 529, which you don’t get if you use the roth as your college savings account.
Also, someone might want to contribute to a traditional IRA and get the tax deduction. That would prevent them from using a Roth, and a traditional Ira is not a good college savings account. So for those people, it might make sense to do a 529 as well.
That doesn’t mean you should always pick one over the other, but to say the benefits aren’t that great is silly, especially if you are talking about “middle income Earners” where every dollar matters.
Also you seem to be assuming that people on here aren’t in 1% so they can’t afford to fund both. That’s a bunch of bullshit. A lot of people (especially on here) can afford to fund a Roth IRA and put some amount ($50? $1000?) into a 529. That’s what the person who started this thread was asking.
(http://www.autoadmit.com/thread.php?thread_id=3864057&forum_id=2#35197678) |
|
Date: January 20th, 2018 1:50 PM Author: Chestnut Turdskin
My reasoning to not contribute to an IRA is unrelated to the sample situation posted above. Also, I’m not a top 1% earner, so the Roth would still be a fair alternative:/choice in my situation, except that Pennsylvania has some of the most favorable 529 structures in the country. My reasoning to not contribute is:
1) My husband has tons of money saved. By the time my kid is college-aged, we will have easy access to as much as he’ll need. Sure, putting some in a 529 will shield it from cap gains, but again, it won’t make a difference to us in 16 years. Cap gains on a 300k account will be chump change. Now, buying educational credits might be a better deal for us. But again, we can do that at anytime, and anyhow, we are not price sensitive.
2) I do not earn enough to contribute to a 529 meaningfully.
(http://www.autoadmit.com/thread.php?thread_id=3864057&forum_id=2#35197177)
|
|
Date: January 20th, 2018 2:02 PM Author: charismatic persian
Why should someone who can afford to save in both a Roth and a 529 (by no means do you need to be a 1%er to do this) forgo a 529 and use a Roth to save for college instead of as a retirement vehicle?
Why would you not fund both?
Even in your rich husband’s situation, you’re going to forgo a vehicle that shields some of the tax liability. How is that better than just funding a 529?
(http://www.autoadmit.com/thread.php?thread_id=3864057&forum_id=2#35197241) |
|
Date: January 21st, 2018 6:19 PM Author: Hairraiser topaz messiness fanboi
You’re totally out of your element here. 529s don’t benefit the middle class who can’t save for both retirement and college but the rich benefit BIGLY from the tax free growth.
There is no limit to the growth in 529 plans. There is only a limit on contributions. So this $300k “limit” you keep talking about doesn’t factor in market appreciation. In CA the limit is $475k in contributions but the growth can be millions of dollars if you keep letting it appreciate. And that $475k is per beneficiary, so you can start as many as you like and get millions in tax free growth. It’s cap gains on millions of dollars not $300k. High net worth people don’t just use it as a vehicle for tax free growth for their children’s expenses but grandchildren and nieces and nephews etc. you can also keep changing beneficiaries until you use it up.
I also don’t know where you’re estimating cap gains on $300k as only $20-$30k. The top rate is 23.8%. But you know, even if it’s “only” $20-30k, LOL at a “personal finance expert” writing off such cap gains taxes as a drop in the bucket.
(http://www.autoadmit.com/thread.php?thread_id=3864057&forum_id=2#35204741) |
Date: January 18th, 2018 10:02 PM Author: arousing beta wrinkle
$200/month since birth. Two kids.
Will look to up it probably when they start 1st grade and then high school, something like that
(http://www.autoadmit.com/thread.php?thread_id=3864057&forum_id=2#35186392) |
Date: January 18th, 2018 11:42 PM Author: milky flickering kitchen toaster
You idiots realize when your kids apply to college in 15 years the admins are just going to look at your 529 assets and charge you that for your first years tuition, right?
You will almost surely be penalized somehow for having that money. Probably half of it will be confiscated to fund diversity coordinators.
(http://www.autoadmit.com/thread.php?thread_id=3864057&forum_id=2#35187120)
|
|
Date: January 20th, 2018 12:16 PM Author: Diverse useless brakes
If your child gets a scholarship for X dollars, the parents can withdraw X dollars from the 529 tax-free and spend the X dollars on whatever they want (they don't need to spend it on college).
The private schools set high tuition rate and scholarships so the parents can do this.
If you treat the 529 like this, the tax treatment ends up being the same as a Traditional IRA, but you can put away $14,000/yr/child, and you can collect any state tax credits ($500/yr in my state).
(http://www.autoadmit.com/thread.php?thread_id=3864057&forum_id=2#35196533) |
Date: January 20th, 2018 12:04 PM Author: Filthy dilemma pervert
Didn't want to get into 529 v. UGMA, but I 100% went for UGMA.
-529 can't be used at CONSERVAHERO schools like Hillsdale, Grove City, Patrick Henry
-529 basically worthless at Naval Academy or West Point
-529 assumes your kid is paying sticker rather than getting significant scholarship/AP credits/community college credits coming in.
-529 limited investment opportunities and higher fees, UGMA I cop dat Vanguard tip.
Yes I also know, maybe you want to pay sticker at your NESCAC like the fucking striver prole you are. But I much prefer the flexibility of the UGMA with the tradeoff of the potentially higher tax liability.
Hate away, XO. :)
(http://www.autoadmit.com/thread.php?thread_id=3864057&forum_id=2#35196474) |
|
Date: March 26th, 2018 11:52 AM Author: Hairraiser topaz messiness fanboi
You forgot the biggest drawback of a UGMA: your kid owns the money at 18 and has no obligation to spend it on educational expenses.
529 is still your money.
I have a UGMA/UTMA but only to get the $2200/year of 0% taxes on dividends.
(http://www.autoadmit.com/thread.php?thread_id=3864057&forum_id=2#35691057) |
Date: January 20th, 2018 1:23 PM Author: sexy harsh box office
10k/year (up to state tax benefit in NY).
(http://www.autoadmit.com/thread.php?thread_id=3864057&forum_id=2#35197008)
|
Date: January 21st, 2018 6:15 AM Author: Histrionic Theater Stage Affirmative Action
Zero. They can pay for college themselves like I did.
Will strongly encourage military + GI Bill. Once they've been in the military, they will be independent students and not need my financial info for FAFSA.
(http://www.autoadmit.com/thread.php?thread_id=3864057&forum_id=2#35201613) |
|
Date: January 21st, 2018 11:53 PM Author: Histrionic Theater Stage Affirmative Action
You shouldn't have needed to provide your parents info if getting a JD.
Here's my citation:
https://studentaid.ed.gov/sa/sites/default/files/fafsa-dependency.pdf
This may be a 180 lifehack
(http://www.autoadmit.com/thread.php?thread_id=3864057&forum_id=2#35207210) |
|
|