529 College Savings

idcwby

Veteran member
Jun 23, 2015
1,376
3,458
Idaho
Does anyone have experience with the college savings plans? Are they worth it? Is a regular style savings plan a better choice?
 

mosquito

Active Member
Nov 1, 2012
300
416
NE ohio
Your going to get different opinions with this one. I asked are accountant this question 15 years ago . He recommended just a roth ira account ( money has already been taxed) he said you can take the money without penalty for college for your kids . He said if your kids don't end up going to college or if they were to get scholarships it was much harder to move the money out of the 529 (I believe ) disclaimer do your homework its been a long time . Anyway i have money every month into a direct deposit account for it and don't even miss it.
 

Bonecollector

Veteran member
Mar 9, 2014
5,769
3,512
Ohio
Your going to get different opinions with this one. I asked are accountant this question 15 years ago . He recommended just a roth ira account ( money has already been taxed) he said you can take the money without penalty for college for your kids . He said if your kids don't end up going to college or if they were to get scholarships it was much harder to move the money out of the 529 (I believe ) disclaimer do your homework its been a long time . Anyway i have money every month into a direct deposit account for it and don't even miss it.
This sound accurate from my memory.
 
  • Like
Reactions: idcwby

JimP

Veteran member
Mar 28, 2016
6,432
7,116
68
Gypsum, Co
This is another one where you can talk to a financial advisor to see where you can get the best bang for your buck.

They can point you to a investment plan where you would come out way ahead of a typical college fund even if your kids do go to college.
 

go_deep

Veteran member
Nov 30, 2014
2,578
1,819
Wyoming
You'll need to speak with a financial advisor in your state, but we have an account for each of our kids that can either be used for college, or towards the purchase of their first house. They don't go to college they can use the money to go towards a house at least.
 
  • Like
Reactions: idcwby and mosquito

buckbull

Veteran member
Jun 20, 2011
1,799
856
I did 529 plans for all 3 of my kids. Was one of the best decisions I have ever made. When my oldest son died, I was able to distribute his funds to my youngest son and daughter easily. When I divorced the money was protected from my ex-wife who probably would have pissed it away. Rate of return was on par with what I do with my 401k. I'm not as active with my accounts as I should be, i'm a invest and then compare on a yearly basis guy. As others have said, a financial advisor would be the best person to ask. For my individual case, the 529 plan worked well; and with 3 kids I knew at least one was going to go to college. I don't think you can save too much for college. My son goes to University of Illinois and tuitiion, dorm, meal plan etc comes to almost $40,000 a year (in state tuittion). And with incidentals its over that, for example a parking pass alone is $650 a year. My daughter plans to go to Illinois State next fall and in-state tuition there is around $25,000. When the government started guaranteeing loans to any student it basically provided a blank check for these universities. Eventually someone will have to pay the piper as billions of dollars in loans will never be paid for.
 
  • Like
Reactions: idcwby

idcwby

Veteran member
Jun 23, 2015
1,376
3,458
Idaho
Thanks everyone. Didn’t even know about a Roth 401 being an option for this. I know I need to talk to a financial advisor, but I like getting real world experience also. The thing that makes me nervous about the 529 is no college is attended and having to pay the taxes to get the money out.
 

buckbull

Veteran member
Jun 20, 2011
1,799
856
Thanks everyone. Didn’t even know about a Roth 401 being an option for this. I know I need to talk to a financial advisor, but I like getting real world experience also. The thing that makes me nervous about the 529 is no college is attended and having to pay the taxes to get the money out.
Fyi -The 529 in my state can be transferred to grandchildren and other relatives. College or trade school was not a choice for our kids. And yeah; they could have ultimately decided not to go as its their choice but we have always made education a top priority.
 
  • Like
Reactions: idcwby