[rbcpa]

Hi everyone so the ones that have kids how are you saving up for college expenses? I have two nephews both age 2 and my sister needs suggestions on how to save for college. Being the CPA candidate that I am, she asked me for help but don’t know much about this area. Any help would be appreciated 🙂

BEC - PASSED
AUD - PASSED
REG - PASSED
FAR - PASSED

[LongShot]

I have a little money direct deposited from each check into a 529 plan for my kids. It won't cover their college, but should help them more than my parents were able to help me or my brothers. Just be sure that whatever state they're in doesn't have their plan set up to only pay an in-state school, I've heard some do that but have never bothered to verify other states.

Figure even something small like $15-25 a paycheck, spread over 18-20 years could grow into something decent for them.

FAR - 75
AUD - 72; 87
REG - 64; 74; 84
BEC - 88

Done!!

[Anonymous]

Make a ton of money, that's it. Otherwise it is debt city. The tax advantages of 529 are not that great given the future restriction of funds. Still a tool to use but I would not contribute more to a 529 than whatever the tax benefit is.

Some private schools that are no better than regional state schools charge around 50K a year all in. That is a total 100% scam. Higher Ed these days had a lot of scam elements to it.

Big State schools in the south are a great value. Private schools, like Wesleyan or something, are great schools if you can get in and afford it, but are not worth 6 figure debt.

[GoVPI]

Community college for 2 years.. 2 years at a state school.

They could come out with under 20,000 in loans. Its their best shot for her to be able to pay it for them.

*first hand experience- I went the route above, will graduate with 17,000 in loans. My childhood best friend went straight to the 4 year school.. 54,000 in loans*

BEC 8/14/14 - Passed
Graduated from college 12/13/14
AUD 8/31/15 - 74. Retake - Passed
REG
FAR

[Anonymous]

There are Coverdell's (basically a Roth, but for college vs retirement) but she'll need to speak to a professional to see if they are appropriate under her particular circumstances. Coverdells are NOT deductable; however, they are not taxes until distributed (like a Roth).

The problem I personally have with a Coverdell is that the money is locked up if she needs it. She will more or less get the same effect by buying a Dow ETF and holding it until the kids are ready for school; however, if she need the money for a rainy day, she can access it. If she locks it up in a Coverdell, then tries to cash out prematurely, she'll be subject to penalties.

[tomq04]

They can live with us rent free while going to a community college, and a local state university.

Alternatively, I would prefer them to start a business and skip college altogether…however i'm now rather jaded when it comes to higher ed.

REG- (1) 76
FAR- (2) 64, (5)74, (7)83 (Over achiever!)
AUD- (3) 70, (4) 75
BEC- (6) 75

[Author]

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