College 529's Savings plans

[matt4hand]

As many of you know my wife and I are expecting twins in December and I am looking into setting up 529 college savings pans.

I've heard of sticker shock before but I've coined a new phrase called "TWIN SHOCK" after the last 5 months of pregnancy!


Do any of the US guys have an experience with these 529's? I've looked at Clark Howard's site http://www.clarkhoward.com/news/clar...29-guide/nFZS/ and learned a lot.

I wanted to know how you guys/gals save for your kids College?
If you tell me to sell my watches I WILL FIND YOU!

When I factor in inflation and rising tuition and feel like I need a 2nd and 3rd Job.

[Tripp11]

Indiana resident here, and we utilize a 529 plan for our daughter. Here in Indiana, taxpayers are eligible for a state income tax credit of 20% of contributions to their 529 account, up to $1,000 credit per year. Thus, we contribute at least $5,000 per year into her account. In addition to the 529 plan, I've set-up in an investment account where I do some day trading and hopefully I will continue making smart decisions.

The below is from my plan's website:

Before investing in any 529 plan, you should consider whether your or the beneficiary's home state offers a 529 plan that provides its taxpayers with favorable state tax or other benefits that are only available through investment in the home state's 529 plan. You also should consult your financial, tax, or other adviser to learn more about how state-based benefits (or any limitations) would apply to your specific circumstances. You also may wish to contact directly your home state's 529 college savings plan(s), or any other 529 plan, to learn more about those plans' features, benefits, and limitations. Keep in mind that state-based benefits should be one of many appropriately weighted factors to be considered when making an investment decision.

[gwalker]

All I can tell you is pray you have the next MJ or Babe Ruth.....

[Art 1]

We did college pre-pay for ours and it has worked out well.

[crew]

Try checking this out:
http://www.savingforcollege.com/

[threemonkeys]

We gave three kids and are paying for a couple of years with the 529 plan. Our goal was to lessen the years when we would have to pay for more than one college tuition bill at the same time. Recently tuition hiked up another 30-something percent. Man I wish I would have purchased additional years.

[Runnin' Rebel]

Matt, you have to pound away the money for the kids, mines going to school in California now, her 2nd year, and they raised the tuition at least 20% this year. I got her covered for about 3.5 years. Don't forget about the dorm. Her biology book is now 170.00. She's taking 17 credits. It's crazy. When I went to UNLV is was about 14 per hour, my daughters is 405 per hour.

Edit: your retirement is more important though, so plan accordingly. Kids can always get a loan or get a free ride if their academics are excellent.

[Dr. Robert]

Whatever you do....do it now......my son's in a state univ. & he is the "money pit"

[Tripp11]

Originally Posted by Art 1

We did college pre-pay for ours and it has worked out well.

You have any further info on this? Or is this a specific college plan?

[Gaijin]

Or you can do as my Dad did and I quote..

"You can go to college if you want, that is fine with me, but I ain't paying for it."

I went to college part time while working full time. Took me 7 years to finish but it can be done. I was only $12,000 in debt when I graduated.

[Lion]

We had savings accounts and Savings Bonds to assist with our son's college education and it still wasn't enough. We have paid back our loans but my son still has about three years left to pay off his loans. As for tuition costs at a state school...when I went to college tuition plus fees cost $295.00 per semester. Now I'd hate to think how much it is!!!

[axxeman01]

Originally Posted by Gaijin

Or you can do as my Dad did and I quote..

"You can go to college if you want, that is fine with me, but I ain't paying for it."

I went to college part time while working full time. Took me 7 years to finish but it can be done. I was only $12,000 in debt when I graduated.

Or join the Armed Forces, here in Illinois if you do 4 years active, you get a 4 year free ride to any state school PLUS you get your GI Bill (which I think is nearly $1500 or so a month now). And if you pick Navy or Air Force, I think you're nearly 100% safe!

[mfer]

I did a ton of research on those plans. My end analysis was there are many better saving vehicles out there. The +'s (like tax credit for putting in) do not outweigh the -'s.

I'm going for the pay off the house and diversified investing like stocks, bonds, real estate, etc. You MUST save for retirement. Give your children the gift of them not having to take care of you. You will find a way to pay for college when it is time. Hopefully your investing, etc will make it easier, but the 529's have too many restrictions (for me).

[rolexgiants]

Getting crazy. Top school today is easily 60k a year(tuition, room and board) so in about 18 years it will run u about 120-130k a year... Sad but true!!

[Timber Loftis]

I despise colleges for their inflation rates. It's stupid and ridiculous. I no longer give any money to any of my alma maters. A call asking me for money gets them an economics lecture about raising prices over 10%/yr. in a recession.

Anyway, I hope that by the time my 2 and 4 year old get there the marketplace has kicked them around a bit. I'd say fully 50%+ of the jobs you can get with a 4-year degree can be obtained with no degree. And I hope a lot of the youngsters today are realizing that and opting to just skip the whole money pit or get shorter degrees targeted to professions.

[matt4hand]

Thanks guys!

[Art 1]

Originally Posted by Tripp11

You have any further info on this? Or is this a specific college plan?

It is called Florida pre paid. Wife made monthly payments for years that locked the price in when they kids were young. Both of them are in Univ now and we have paid 4 years of classes, dorms and local fees. Our daughter has 75% of her tuition paid for due to her HS grades and SAT score, so we get a refund for that. We pay for books and a meal plan, the rest has been paid off for years and at what the rates were many years ago. Thank God my wife thought of doing this.

Had we put this money into other investments for the kids school we could have lost all or most of it due the the crashes over the years. But since college fees have gone up so much we ended up paying what the rates were years ago.

[Tripp11]

Originally Posted by Art 1

It is called Florida pre paid. Wife made monthly payments for years that locked the price in when they kids were young. Both of them are in Univ now and we have paid 4 years of classes, dorms and local fees. Our daughter has 75% of her tuition paid for due to her HS grades and SAT score, so we get a refund for that. We pay for books and a meal plan, the rest has been paid off for years and at what the rates were many years ago. Thank God my wife thought of doing this.

Had we put this money into other investments for the kids school we could have lost all or most of it due the the crashes over the years. But since college fees have gone up so much we ended up paying what the rates were years ago.

Thanks, Art! Appreciate the info! I'll see if we have something similar in Indiana.