Anyone ever invested in a 529 before having kids? I know you need to tie the account to a social security number, but from my understanding you can put it in your own name and transfer the beneficiary later.
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Investing in 529 Preemptively
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Last: 8 mo ago by jamey
I may have understood wrong, but from what I've gathered it's an advantage to have the 529 set up by the grandparents so you don't have to claim that money on your kids FAFSA. You can fund it but it won't impact any need based scholarships.
Yes. However, depending on your income it may not matter.
And yes, you can set up a 529 that you own with you as the beneficiary. You can later change the beneficiary, and divide it into multiple accounts for other future kids (beneficiaries). You can also now use up to 10k a year for private school.
And yes, you can set up a 529 that you own with you as the beneficiary. You can later change the beneficiary, and divide it into multiple accounts for other future kids (beneficiaries). You can also now use up to 10k a year for private school.
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I'll send you the memo I got that says loans no longer require repayment. Put those funds into your own index funds Brokerage account.
We did. As said, we set them up in my name, when we had our first kid we transferred to his name then set another up in my name. About to have our second kid and transfer to her name.
Are you not already fully funding your own Roth IRAs and or qualified plans at work? If not, then you are doing yourself a disservice by thinking about a 529.
Why, you may ask?
--You may not actually have children, or they may not go to college, or they can get scholarships, or they can join the Corps for ROTC $$$--you get the point.
--your Retirement accounts can be accessed for college funding, so stuff those as full as possible before starting college funds. If above bullet point occurs, you're that much closer to a secure retirement.
--529, Coverdell, and brokerage accounts show up on FAFSA, while retirement accounts, life insurance, and annuity cash values do not. Maximize all of the places that will not be used against you to calculate your expected family contribution before prioritizing a 529. I'd go so far as to say paying extra on your mortgage would be better--Pulling funds from a HELOC to pay tuition is a viable strategy if there's more equity. Everyone on Texags is independently wealthy, of course, even wealthy folks can manage their expected family contribution down a bit for premium-priced schools.
Its admirable and wise to start saving now but do it in the most efficient way possible.
Why, you may ask?
--You may not actually have children, or they may not go to college, or they can get scholarships, or they can join the Corps for ROTC $$$--you get the point.
--your Retirement accounts can be accessed for college funding, so stuff those as full as possible before starting college funds. If above bullet point occurs, you're that much closer to a secure retirement.
--529, Coverdell, and brokerage accounts show up on FAFSA, while retirement accounts, life insurance, and annuity cash values do not. Maximize all of the places that will not be used against you to calculate your expected family contribution before prioritizing a 529. I'd go so far as to say paying extra on your mortgage would be better--Pulling funds from a HELOC to pay tuition is a viable strategy if there's more equity. Everyone on Texags is independently wealthy, of course, even wealthy folks can manage their expected family contribution down a bit for premium-priced schools.
Its admirable and wise to start saving now but do it in the most efficient way possible.
Ridin' 'cross the desert. . .
I was under the assumption that all of those things were already fully funded.
Yes I did starting when I got married in 2018. First kid came in 2021 and transferred over some fairly large gains to her to give her a big head start.angryocotillo said:
Anyone ever invested in a 529 before having kids? I know you need to tie the account to a social security number, but from my understanding you can put it in your own name and transfer the beneficiary later.
Other than potentially years of extra compounded returns, the biggest advantage to this strategy is making room in your budget NOW for 529 expenses. It's really easy to think you'll start saving $200-$300 a month for a 529 once your first kid comes along, but the reality is having a kid is a giant shock to your budget no matter how much money you make. Do it now and it becomes an embedded expenses like your mortgage/rent is
Thanks, that's what I was hoping to hear
cadetjay02, can you email me at my username at yahoo? I have a question that maybe you could help me with.
It's hard to imagine the R and D spending and freebies going on another 18 years. At some point the financial **** has to hit the fan, putting an end to all the wild irresponsibility from our government
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