WOW now that’s serious college savings. $1.2MM in a 529 AFTER paying for education. You could put all of your grandkids through college as well…and maybe even their kids depending on the market. You’re almost an endowment at this point Image may be NSFW.I opened a 529 with NY Saves (Vanguard managed) shortly after my only daughter was born, and invested the yearly maximum in their stock heavy portfolios. I also opened up a Coverdell (ESA) account, just in case the 529 amount wouldn't be sufficient to cover a top school. Before her 10th birthday, I realized there would be plenty to cover almost any undergrad program plus most, if not all, grad schools if she pursued her education post-college. I decided to invest the Coverdell in one stock, realizing that if it went to 0, her education would still be covered. She ended up going to a state supported school, and her 529 plan was more than sufficient to cover the cost. Meanwhile, the Coverdell had ballooned to nearly 1 mil by the time she graduated. We stuck with that investment until she turned 30, which is when you have to either withdraw the funds or transfer to a 529. (Actually, you have until one month after the beneficiary turns 30.) So at this pint, her assets in the 529 are around 1.2mil, after taking $7000 for her Roth IRA contribution, paying for her wedding and their backyard landscaping/pool project. The plan is to rename her child/children as beneficiary when that time comes.
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Statistics: Posted by topofthebellcurve — Fri Mar 01, 2024 5:07 pm — Replies 45 — Views 1952
