Kid-havers Poll: how much money, if any, are you putting in a 529 every month
| ruby bawdyhouse hominid | 01/18/18 | | startling theater stage sound barrier | 01/18/18 | | ruby bawdyhouse hominid | 01/18/18 | | spectacular cerise dilemma | 01/20/18 | | aggressive vivacious wagecucks toaster | 01/20/18 | | multi-colored organic girlfriend | 01/22/18 | | Pale shaky jew indirect expression | 01/18/18 | | Exhilarant property haunted graveyard | 01/18/18 | | nofapping fragrant queen of the night stag film | 01/18/18 | | Brass mental disorder | 01/18/18 | | ruby bawdyhouse hominid | 01/18/18 | | Brass mental disorder | 01/18/18 | | Fluffy market stain | 01/18/18 | | ruby bawdyhouse hominid | 01/18/18 | | Flirting red stage | 01/18/18 | | Fluffy market stain | 01/18/18 | | Exhilarant property haunted graveyard | 01/18/18 | | Flirting red stage | 01/18/18 | | Exhilarant property haunted graveyard | 01/18/18 | | Flirting red stage | 01/18/18 | | sable beady-eyed wrinkle | 01/18/18 | | chestnut stirring dopamine | 01/21/18 | | Brass mental disorder | 01/18/18 | | Arousing factory reset button menage | 01/18/18 | | Exhilarant property haunted graveyard | 01/18/18 | | Maroon laughsome roommate | 01/18/18 | | Lime den | 01/18/18 | | Pale shaky jew indirect expression | 01/20/18 | | Pungent Sneaky Criminal Son Of Senegal | 01/20/18 | | Fluffy market stain | 01/20/18 | | mewling know-it-all police squad state | 01/20/18 | | Fluffy market stain | 01/20/18 | | mewling know-it-all police squad state | 01/20/18 | | Naked Athletic Conference Jewess | 01/20/18 | | contagious pontificating parlor | 01/20/18 | | onyx parlour digit ratio | 01/20/18 | | ruby bawdyhouse hominid | 01/20/18 | | Fluffy market stain | 01/20/18 | | onyx parlour digit ratio | 01/20/18 | | chestnut stirring dopamine | 01/21/18 | | 180 opaque public bath incel | 01/21/18 | | talented telephone | 01/21/18 | | talented telephone | 01/21/18 | | sickened canary ticket booth | 03/26/18 | | indecent racy stead hissy fit | 01/20/18 | | puce legend | 01/20/18 | | Fluffy market stain | 01/20/18 | | Peach Principal's Office | 01/20/18 | | Fluffy market stain | 01/20/18 | | sickened canary ticket booth | 03/26/18 | | Self-absorbed Razzle-dazzle Sanctuary | 01/20/18 | | Fluffy market stain | 01/20/18 | | Self-absorbed Razzle-dazzle Sanctuary | 01/21/18 | | Purple Church Building | 01/20/18 | | ruby bawdyhouse hominid | 01/20/18 | | Fluffy market stain | 01/20/18 | | Histrionic jade orchestra pit | 01/20/18 | | Fluffy market stain | 01/20/18 | | Histrionic jade orchestra pit | 01/20/18 | | Fluffy market stain | 01/20/18 | | Histrionic jade orchestra pit | 01/20/18 | | Purple Church Building | 01/20/18 | | Fluffy market stain | 01/20/18 | | talented telephone | 01/21/18 | | onyx parlour digit ratio | 01/21/18 | | Brass mental disorder | 01/21/18 | | Fluffy market stain | 01/21/18 | | talented telephone | 01/21/18 | | Exhilarant property haunted graveyard | 01/20/18 | | Fluffy market stain | 01/20/18 | | onyx parlour digit ratio | 01/20/18 | | Exhilarant property haunted graveyard | 01/20/18 | | Fluffy market stain | 01/20/18 | | Exhilarant property haunted graveyard | 01/20/18 | | onyx parlour digit ratio | 01/21/18 | | onyx parlour digit ratio | 01/21/18 | | thriller transparent school cafeteria gay wizard | 01/21/18 | | Exhilarant property haunted graveyard | 01/21/18 | | Exhilarant property haunted graveyard | 01/21/18 | | Brass mental disorder | 01/21/18 | | Buff lodge cuckoldry | 01/20/18 | | Exhilarant property haunted graveyard | 01/20/18 | | Fishy Titillating Filthpig Church | 01/20/18 | | Exhilarant property haunted graveyard | 01/20/18 | | Fluffy market stain | 01/20/18 | | thriller transparent school cafeteria gay wizard | 01/21/18 | | nofapping fragrant queen of the night stag film | 01/20/18 | | Fluffy market stain | 01/20/18 | | onyx parlour digit ratio | 01/20/18 | | thriller transparent school cafeteria gay wizard | 01/21/18 | | Brass mental disorder | 01/21/18 | | talented telephone | 01/21/18 | | onyx parlour digit ratio | 01/21/18 | | Brass mental disorder | 01/21/18 | | onyx parlour digit ratio | 01/21/18 | | 180 opaque public bath incel | 01/21/18 | | Peach Principal's Office | 01/20/18 | | smoky electric area liquid oxygen | 01/21/18 | | Marvelous Center | 01/18/18 | | Thirsty Comical Theatre International Law Enforcement Agency | 01/18/18 | | ruby bawdyhouse hominid | 01/18/18 | | Exhilarant property haunted graveyard | 01/18/18 | | Pale shaky jew indirect expression | 01/20/18 | | chestnut stirring dopamine | 01/21/18 | | turquoise diverse step-uncle's house | 01/18/18 | | Boyish gas station stock car | 01/18/18 | | Pungent Sneaky Criminal Son Of Senegal | 01/20/18 | | Flirting red stage | 01/18/18 | | sable beady-eyed wrinkle | 01/18/18 | | Flirting red stage | 01/18/18 | | Buff lodge cuckoldry | 01/18/18 | | mustard bateful boiling water native | 01/18/18 | | Sooty Galvanic Meetinghouse Tank | 01/18/18 | | sable beady-eyed wrinkle | 01/18/18 | | talented telephone | 01/21/18 | | sable beady-eyed wrinkle | 01/18/18 | | Purple Church Building | 01/18/18 | | chartreuse soul-stirring cumskin | 01/18/18 | | Offensive idea he suggested messiness | 01/18/18 | | Excitant goyim mad-dog skullcap | 01/18/18 | | Flirting red stage | 01/18/18 | | onyx parlour digit ratio | 01/20/18 | | mewling know-it-all police squad state | 01/18/18 | | Big quadroon | 01/18/18 | | Aquamarine hunting ground kitchen | 01/18/18 | | Maroon laughsome roommate | 01/18/18 | | onyx parlour digit ratio | 01/20/18 | | heady water buffalo | 01/18/18 | | Lime den | 01/18/18 | | Flirting red stage | 01/20/18 | | Buff lodge cuckoldry | 01/20/18 | | onyx parlour digit ratio | 01/20/18 | | ruddy pisswyrm generalized bond | 01/20/18 | | nubile gold cruise ship | 01/20/18 | | puce legend | 01/20/18 | | Boyish gas station stock car | 01/20/18 | | Buff lodge cuckoldry | 01/20/18 | | Iridescent coffee pot abode | 01/21/18 | | onyx parlour digit ratio | 01/20/18 | | cruel-hearted rehab weed whacker | 01/20/18 | | nubile gold cruise ship | 01/20/18 | | Purple Church Building | 01/20/18 | | Lime den | 01/21/18 | | nubile gold cruise ship | 01/20/18 | | puce legend | 01/20/18 | | nubile gold cruise ship | 01/20/18 | | ruby bawdyhouse hominid | 01/20/18 | | Mentally Impaired Station | 01/20/18 | | Flirting red stage | 01/20/18 | | Self-absorbed Razzle-dazzle Sanctuary | 01/20/18 | | nubile gold cruise ship | 01/20/18 | | onyx parlour digit ratio | 01/20/18 | | nubile gold cruise ship | 01/20/18 | | cracking aqua azn site | 01/20/18 | | nubile gold cruise ship | 01/20/18 | | cracking aqua azn site | 01/20/18 | | Curious Tattoo | 01/20/18 | | Brass mental disorder | 03/26/18 | | hairraiser plaza | 01/20/18 | | aggressive vivacious wagecucks toaster | 01/20/18 | | Curious Tattoo | 01/20/18 | | aggressive vivacious wagecucks toaster | 01/20/18 | | onyx parlour digit ratio | 01/21/18 | | Orange lascivious senate legal warrant | 04/24/18 | | Claret institution | 01/20/18 | | onyx parlour digit ratio | 01/21/18 | | rose reading party base | 01/20/18 | | Flirting red stage | 01/21/18 | | onyx parlour digit ratio | 01/21/18 | | rose reading party base | 01/21/18 | | chestnut stirring dopamine | 01/21/18 | | Flirting red stage | 01/21/18 | | chestnut stirring dopamine | 01/21/18 | | chestnut stirring dopamine | 01/21/18 | | ruby bawdyhouse hominid | 01/21/18 | | Razzmatazz wild yarmulke | 03/26/18 | | yapping hell boltzmann | 03/26/18 | | onyx parlour digit ratio | 03/26/18 | | sickened canary ticket booth | 03/26/18 | | at-the-ready glittery rigpig range | 04/24/18 | | out-of-control stage love of her life | 04/24/18 | | ruby bawdyhouse hominid | 08/07/18 | | Milky locus headpube | 12/15/19 |
Poast new message in this thread
|
Date: January 18th, 2018 10:56 PM Author: Brass mental disorder
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: Fluffy market stain
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: onyx parlour digit ratio
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: Fluffy market stain
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: onyx parlour digit ratio
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: Fluffy market stain
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: Purple Church Building
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: Brass mental disorder
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: chartreuse soul-stirring cumskin
$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: heady water buffalo
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: nubile gold cruise ship
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: cracking aqua azn site
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: Brass mental disorder
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: hairraiser plaza
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: chestnut stirring dopamine
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) |
|
|