Kid-havers Poll: how much money, if any, are you putting in a 529 every month
| Unholy hall boiling water | 01/18/18 | | charismatic brindle friendly grandma | 01/18/18 | | Unholy hall boiling water | 01/18/18 | | talented cyan orchestra pit | 01/20/18 | | seedy den death wish | 01/20/18 | | Crystalline location son of senegal | 01/22/18 | | Racy swollen corn cake station | 01/18/18 | | offensive aqua antidepressant drug | 01/18/18 | | Shimmering police squad | 01/18/18 | | Filthy range ceo | 01/18/18 | | Unholy hall boiling water | 01/18/18 | | Filthy range ceo | 01/18/18 | | violent private investor nursing home | 01/18/18 | | Unholy hall boiling water | 01/18/18 | | Ocher Psychic Turdskin | 01/18/18 | | violent private investor nursing home | 01/18/18 | | offensive aqua antidepressant drug | 01/18/18 | | Ocher Psychic Turdskin | 01/18/18 | | offensive aqua antidepressant drug | 01/18/18 | | Ocher Psychic Turdskin | 01/18/18 | | provocative property | 01/18/18 | | Aromatic state genital piercing | 01/21/18 | | Filthy range ceo | 01/18/18 | | Bearded sick personal credit line stage | 01/18/18 | | offensive aqua antidepressant drug | 01/18/18 | | Self-absorbed base | 01/18/18 | | Grizzly Native Clown | 01/18/18 | | Racy swollen corn cake station | 01/20/18 | | hyperventilating magenta trump supporter church | 01/20/18 | | violent private investor nursing home | 01/20/18 | | excitant forum fanboi | 01/20/18 | | violent private investor nursing home | 01/20/18 | | excitant forum fanboi | 01/20/18 | | plum soul-stirring hominid | 01/20/18 | | Razzle bossy abode | 01/20/18 | | Thriller fluffy chapel | 01/20/18 | | Unholy hall boiling water | 01/20/18 | | violent private investor nursing home | 01/20/18 | | Thriller fluffy chapel | 01/20/18 | | Aromatic state genital piercing | 01/21/18 | | disrespectful well-lubricated double fault | 01/21/18 | | Histrionic Laser Beams | 01/21/18 | | Histrionic Laser Beams | 01/21/18 | | Mewling pocket flask bawdyhouse | 03/26/18 | | Pale Feces | 01/20/18 | | Transparent newt corner | 01/20/18 | | violent private investor nursing home | 01/20/18 | | Slap-happy Emerald Hunting Ground Goyim | 01/20/18 | | violent private investor nursing home | 01/20/18 | | Mewling pocket flask bawdyhouse | 03/26/18 | | Umber Prole Ticket Booth | 01/20/18 | | violent private investor nursing home | 01/20/18 | | Umber Prole Ticket Booth | 01/21/18 | | Tantric Splenetic Azn Tanning Salon | 01/20/18 | | Unholy hall boiling water | 01/20/18 | | violent private investor nursing home | 01/20/18 | | poppy cumskin | 01/20/18 | | violent private investor nursing home | 01/20/18 | | poppy cumskin | 01/20/18 | | violent private investor nursing home | 01/20/18 | | poppy cumskin | 01/20/18 | | Tantric Splenetic Azn Tanning Salon | 01/20/18 | | violent private investor nursing home | 01/20/18 | | Histrionic Laser Beams | 01/21/18 | | Thriller fluffy chapel | 01/21/18 | | Filthy range ceo | 01/21/18 | | violent private investor nursing home | 01/21/18 | | Histrionic Laser Beams | 01/21/18 | | offensive aqua antidepressant drug | 01/20/18 | | violent private investor nursing home | 01/20/18 | | Thriller fluffy chapel | 01/20/18 | | offensive aqua antidepressant drug | 01/20/18 | | violent private investor nursing home | 01/20/18 | | offensive aqua antidepressant drug | 01/20/18 | | Thriller fluffy chapel | 01/21/18 | | Thriller fluffy chapel | 01/21/18 | | Startling organic girlfriend dingle berry | 01/21/18 | | offensive aqua antidepressant drug | 01/21/18 | | offensive aqua antidepressant drug | 01/21/18 | | Filthy range ceo | 01/21/18 | | shivering puppy | 01/20/18 | | offensive aqua antidepressant drug | 01/20/18 | | coral reading party | 01/20/18 | | offensive aqua antidepressant drug | 01/20/18 | | violent private investor nursing home | 01/20/18 | | Startling organic girlfriend dingle berry | 01/21/18 | | Shimmering police squad | 01/20/18 | | violent private investor nursing home | 01/20/18 | | Thriller fluffy chapel | 01/20/18 | | Startling organic girlfriend dingle berry | 01/21/18 | | Filthy range ceo | 01/21/18 | | Histrionic Laser Beams | 01/21/18 | | Thriller fluffy chapel | 01/21/18 | | Filthy range ceo | 01/21/18 | | Thriller fluffy chapel | 01/21/18 | | disrespectful well-lubricated double fault | 01/21/18 | | Slap-happy Emerald Hunting Ground Goyim | 01/20/18 | | kink-friendly carnelian international law enforcement agency legal warrant | 01/21/18 | | Honey-headed Unhinged Water Buffalo | 01/18/18 | | Ungodly theater | 01/18/18 | | Unholy hall boiling water | 01/18/18 | | offensive aqua antidepressant drug | 01/18/18 | | Racy swollen corn cake station | 01/20/18 | | Aromatic state genital piercing | 01/21/18 | | autistic theatre stain | 01/18/18 | | Arrogant set | 01/18/18 | | hyperventilating magenta trump supporter church | 01/20/18 | | Ocher Psychic Turdskin | 01/18/18 | | provocative property | 01/18/18 | | Ocher Psychic Turdskin | 01/18/18 | | shivering puppy | 01/18/18 | | Beady-eyed drab church building | 01/18/18 | | Snowy glittery garrison | 01/18/18 | | provocative property | 01/18/18 | | Histrionic Laser Beams | 01/21/18 | | provocative property | 01/18/18 | | Tantric Splenetic Azn Tanning Salon | 01/18/18 | | stubborn pisswyrm jewess | 01/18/18 | | fear-inspiring olive sanctuary | 01/18/18 | | Indecent stirring twinkling uncleanness | 01/18/18 | | Ocher Psychic Turdskin | 01/18/18 | | Thriller fluffy chapel | 01/20/18 | | excitant forum fanboi | 01/18/18 | | Rose locus | 01/18/18 | | Exhilarant point french chef | 01/18/18 | | Self-absorbed base | 01/18/18 | | Thriller fluffy chapel | 01/20/18 | | Nubile Box Office | 01/18/18 | | Grizzly Native Clown | 01/18/18 | | Ocher Psychic Turdskin | 01/20/18 | | shivering puppy | 01/20/18 | | Thriller fluffy chapel | 01/20/18 | | wine mexican | 01/20/18 | | Henna Really Tough Guy Rehab | 01/20/18 | | Transparent newt corner | 01/20/18 | | Arrogant set | 01/20/18 | | shivering puppy | 01/20/18 | | cowardly heaven mental disorder | 01/21/18 | | Thriller fluffy chapel | 01/20/18 | | mint marvelous macaca | 01/20/18 | | Henna Really Tough Guy Rehab | 01/20/18 | | Tantric Splenetic Azn Tanning Salon | 01/20/18 | | Grizzly Native Clown | 01/21/18 | | Henna Really Tough Guy Rehab | 01/20/18 | | Transparent newt corner | 01/20/18 | | Henna Really Tough Guy Rehab | 01/20/18 | | Unholy hall boiling water | 01/20/18 | | harsh aphrodisiac area ladyboy | 01/20/18 | | Ocher Psychic Turdskin | 01/20/18 | | Umber Prole Ticket Booth | 01/20/18 | | Henna Really Tough Guy Rehab | 01/20/18 | | Thriller fluffy chapel | 01/20/18 | | Henna Really Tough Guy Rehab | 01/20/18 | | swashbuckling mischievous sex offender mad-dog skullcap | 01/20/18 | | Henna Really Tough Guy Rehab | 01/20/18 | | swashbuckling mischievous sex offender mad-dog skullcap | 01/20/18 | | Vivacious Turquoise Goal In Life | 01/20/18 | | Filthy range ceo | 03/26/18 | | Very tactful fantasy-prone address | 01/20/18 | | seedy den death wish | 01/20/18 | | Vivacious Turquoise Goal In Life | 01/20/18 | | seedy den death wish | 01/20/18 | | Thriller fluffy chapel | 01/21/18 | | Gay Sexy Idiot Deer Antler | 04/24/18 | | Laughsome effete generalized bond multi-billionaire | 01/20/18 | | Thriller fluffy chapel | 01/21/18 | | balding saffron spot new version | 01/20/18 | | Ocher Psychic Turdskin | 01/21/18 | | Thriller fluffy chapel | 01/21/18 | | balding saffron spot new version | 01/21/18 | | Aromatic state genital piercing | 01/21/18 | | Ocher Psychic Turdskin | 01/21/18 | | Aromatic state genital piercing | 01/21/18 | | Aromatic state genital piercing | 01/21/18 | | Unholy hall boiling water | 01/21/18 | | Yapping costumed elastic band institution | 03/26/18 | | appetizing indirect expression regret | 03/26/18 | | Thriller fluffy chapel | 03/26/18 | | Mewling pocket flask bawdyhouse | 03/26/18 | | Domesticated center tank | 04/24/18 | | Obsidian 180 Quadroon Pit | 04/24/18 | | Unholy hall boiling water | 08/07/18 | | vermilion shrine lettuce | 12/15/19 |
Poast new message in this thread
|
Date: January 18th, 2018 10:56 PM Author: Filthy range ceo
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: violent private investor nursing home
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: Thriller fluffy chapel
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: violent private investor nursing home
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: Thriller fluffy chapel
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: violent private investor nursing home
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: Tantric Splenetic Azn Tanning Salon
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: Filthy range ceo
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: stubborn pisswyrm jewess
$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: Nubile Box Office
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: Henna Really Tough Guy Rehab
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: swashbuckling mischievous sex offender mad-dog skullcap
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: Filthy range ceo
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: Very tactful fantasy-prone address
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: Aromatic state genital piercing
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) |
|
|