bampf wrote: ↑Mon Nov 01, 2021 8:17 pm
marcopolo wrote: ↑Mon Nov 01, 2021 7:16 pm
bampf wrote: ↑Mon Nov 01, 2021 2:24 pm
I think you can take on $600K in debt with your savings and income.
I question the need for any more money at all in the 529s
. I have three kids and I can't see how you would need anymore unless they are going full boat IVY and even then, its problematic.
Can you? Absolutely. I might even do something like that if it were me. The one thing I might caution you about is buying a house for $2MM. Thats a lot of bones to try and resell for if things go south. That being said, pretty hard to go south giving your current assets and income.
1. Yes
2. No idea
3. No
4. Yes probably.
You can't see how three kids going to college could chew through $165k?!?
Our kids went to an in-state school, we had ~35k of expenses per year. Using that number, x4 years; x3 kids, comes out to $420k. One can spend significantly more, even without going to Ivy league.
Working the other way, $165k/4/3 = ~$14k/yr. Yes, one can find schools at that price point, but it does limit the options quite a bit.
Sigh. OK. Fine.
In state tuition for a 4 year stem degree at the University of Colorado Boulder is about $15K a year. Ask me how I know.
OP stated he has approximately $55K per kid 14,15, and 16 years before they start their first year.
You don't deplete the 529 the first year, at best you deplete 1/4 (1/6th assuming grad school) for tuition.
Growth of the S&P 500 in the last 10 years would have seen that $55K turn into $250K.
So, can I see how OP can deplete the $55K per child 15 years from now? Sure. It would require room, board, books, computers, 6 years of higher education and mediocre returns over the next 15 years.
Now, OP contributes $1K a month per child. For the next n years where n is a function of age of child and distribution during university years.
To make the equation work the following must be true or partially true:
You must assume all three kids don't get scholarships, ROTC, etc..
You must assume all three kids go to expensive top tier schools.
You must assume all three kids go to university.
You must assume that all three kids go to graduate school.
Finally:
OP has a boat load of money already at 35. OP could literally cash flow the kids education at top tier in state university. Ask me how I know.
Given those circumstances, I don't know that I would contribute any more to a 529. I certainly question the need. Could I have been more precise? Sure. But then I would have missed out on this fun exchange of information that we have seen dozens of times before. Think carefully before you overfund your 529s. It wont kill you but you may not need it.
--Bampf