I used the Bankrate calculator to figure out how much we'd need to save to meet my hubby's goal to have 100,000 saved for each bean for college. Assuming a conservative 2 percent return each year, it works out to $385 a month for 18 years.
That's not as bad as I thought it would be. It's totally doable. And, if we had another, we'd still probably be OK, especially if I went to work even part time (plus freelancing).
I know it seems exorbitant, but my hubby's top-rated financial goal at the moment is to pay for his kids' college 100 percent, like his parents did for him, so we can give them a clean slate in adult life.
100k per bean for college
February 11th, 2009 at 06:12 pm
February 11th, 2009 at 06:27 pm 1234376866
February 11th, 2009 at 06:52 pm 1234378362
I have to second not to put it all in a 529. Just because it is your husband's dream doesn't mean it's your kid's dream, that it is best for them, or that they can't get scholarships. I think it is way more likely than he realizes that you won't need it all. I won't knock his choice to save it (& to prepare for his dream). But he could regret saving $200k in 529s if a large chunk can not be used for college. Just keep that in mind. I would fund the 529s now, where they will grow tax free indefinitely. Later on I would invest in other venues. Tax law will change anyway, etc.
February 11th, 2009 at 07:07 pm 1234379261
February 11th, 2009 at 07:19 pm 1234379957
To everyone else. I plan to put the max $2,000 a year into the 529 and find another account to put the rest in. We are limited as to how much we can put in a Roth every year, so any other suggestions are welcome.
KD-- do you know what type of account your parents have at Vanguard? Is it a Roth, a regular brokerage or something else?
February 11th, 2009 at 07:58 pm 1234382303
here i estimated for a law degree at university it would cost me around $35k in tuition. a psychology degree would be around $20k or less.
February 11th, 2009 at 08:25 pm 1234383927
But I go to state colleges. It is not nearly as expensive as Ivy League schools.
February 11th, 2009 at 08:44 pm 1234385069
February 11th, 2009 at 10:36 pm 1234391798
February 12th, 2009 at 01:52 am 1234403530
February 12th, 2009 at 02:10 am 1234404607
February 12th, 2009 at 05:08 am 1234415297
February 12th, 2009 at 01:38 pm 1234445937
I think it is like a regular brokerage account, but everything is in bonds, so it is more stable. I know that Lizard, my 14 yr old, has enough now where they don't make any deposits and she will have more than the $25K at the age of 18. Online, it says my account is the following type: Vanguard Intermediate-Term Tax-Exempt Fund Investor Shares. The fund type is 0042, but that probably means something to Vanguard.
February 12th, 2009 at 03:50 pm 1234453836
Baselle: It's not our only goal. We fully fund all retirement accounts. Some years we sock away more than $30k for retirement. Our house is also paid off, and we have a decent emergency fund. College is the only big expense we have left to save for. And since we are new at this whole parent thing, it's forefront in our minds.