Disney Information Station Logo

Go Back   The DIS Discussion Forums - DISboards.com > Just for Fun > Community Board
Find Hotel Specials & DIScounts
 
facebooktwitterpinterestgoogle plusyoutubeDIS Updates
Register Chat FAQ Tickers Search Today's Posts Mark Forums Read


Reply
 
Thread Tools Rate Thread
Old 11-20-2014, 10:31 AM   #1
mefordis
Imitation: the sincerest form of flattery
 
mefordis's Avatar
 
Join Date: Jun 2006
Location: In a good place.
Posts: 4,865

How do you save for college?

I'm wondering if anyone can share how they go about saving for college - 529 vs. mutual fund, etc.

I am rethinking the 529 because of the tax penalty if it is not used for education. Since my girls are still young maybe they will decide not to go to college, who knows? I don't like having strings attached on my savings. Instead I am thinking of leaving the 529 alone and simply investing in an index fund that I have earmarked for college alone.

Thoughts?

Thanks in advance for your input!
__________________



Oct 2013 Boardwalk Villas
Aug 2010 Wilderness Lodge
May 2009 DLR Grand Californian
April 2008 POFQ
Aug 2007 - Condo
May 2007 Yacht Club
Sept 2006 CSR/POR
mefordis is offline   Reply With Quote
Old 11-20-2014, 10:38 AM   #2
HM
A tag from the TF is better than a personalized licence plate
 
Join Date: Mar 2001
Location: Southeast US
Posts: 7,626

We used/use a 529. We instilled the desire to go to college in our children. It was just a given. They both are in college. Plus, Dh likes taking classes, we could have moved the money over to his name and he could continue his education.
HM is offline   Reply With Quote
|
The DIS
Register to remove

Join Date: 1997
Location: Orlando, FL
Posts: 1,000,000
Old 11-20-2014, 10:55 AM   #3
mefordis
Imitation: the sincerest form of flattery
 
mefordis's Avatar
 
Join Date: Jun 2006
Location: In a good place.
Posts: 4,865

Quote:
Originally Posted by HM View Post
We used/use a 529. We instilled the desire to go to college in our children. It was just a given. They both are in college. Plus, Dh likes taking classes, we could have moved the money over to his name and he could continue his education.
Since you have experience taking money out, did you find your tax liability very low for the capital gains? I guess if you use it for something else you just are hit with capital gains as if it was a regular investment, correct?

Thanks for the input!
__________________



Oct 2013 Boardwalk Villas
Aug 2010 Wilderness Lodge
May 2009 DLR Grand Californian
April 2008 POFQ
Aug 2007 - Condo
May 2007 Yacht Club
Sept 2006 CSR/POR
mefordis is offline   Reply With Quote
Old 11-20-2014, 01:57 PM   #4
tvguy
Question anything the facts don't support.
 
Join Date: Dec 2003
Location: Carmichael, California
Posts: 18,818

I did all my saving outside a 529. Had no idea how much it was going to cost for college, and how I was going to juggle paying for it. I wanted the maximum flexibility.
I ended up using savings, loans and grants. I did not end up using any equity in my home.
My youngest graduates next month.
__________________
tvguy is offline   Reply With Quote
Old 11-20-2014, 02:09 PM   #5
mefordis
Imitation: the sincerest form of flattery
 
mefordis's Avatar
 
Join Date: Jun 2006
Location: In a good place.
Posts: 4,865

Quote:
Originally Posted by tvguy View Post
I did all my saving outside a 529. Had no idea how much it was going to cost for college, and how I was going to juggle paying for it. I wanted the maximum flexibility.
I ended up using savings, loans and grants. I did not end up using any equity in my home.
My youngest graduates next month.
Looking back, do you wish you would have saved in a 529?
__________________



Oct 2013 Boardwalk Villas
Aug 2010 Wilderness Lodge
May 2009 DLR Grand Californian
April 2008 POFQ
Aug 2007 - Condo
May 2007 Yacht Club
Sept 2006 CSR/POR
mefordis is offline   Reply With Quote
Old 11-20-2014, 02:11 PM   #6
toystory1130
Mouseketeer
 
toystory1130's Avatar
 
Join Date: Jun 2005
Location: SC
Posts: 367

My youngest wants to go to culinary school, it cost 15,000. I figured out how many months she has left till graduation and divided, we just save that amount every 2 weeks. We put it in a regular savings acount, I'm like you and don't want it tied up in case she changes her mind when the time comes. I have a graph made up on the fridge so when we add money to our savings funds we move it up a notch. (they look like thermometers)
__________________
Caribbean Beach 2004 * Old Key West 2005 * Pop Century 2007 * Port Orleans Riverside 2008 * All Star Music Christmas 2008 * Beach Club Villa June 2009 * All Star Music Oct 2009 * Port Orleans Riverside June 2010 * Caribbean Beach June 2011 * Coronado Springs 2012 * Residence Inn at Seaworld 2013
toystory1130 is offline   Reply With Quote
Old 11-20-2014, 02:25 PM   #7
Hillbeans
If you're bored, please read a book or watch TV...TFs are scared of eyebrowless people
Pulled an "Agony of Defeat" at the mall
"I told them that I liked Michael Bolton!"
 
Hillbeans's Avatar
 
Join Date: Feb 2003
Location: NJ
Posts: 6,647

In 2002, when my son turned 1, we set up a 529 plan. We invested appx. $1600 a year and about $25K left to us by inheritance. The plan itself in interest, over the past 13 years has made over $15K in interest. Unfortunately the rate of college tuition inflation is so outrageous this will probably not pay for that much of college, but it's a good start.
__________________
1977 - 1st Trip, 1982, 2nd Trip & EPCOT, 2003 - AKL, 2004 2 trips - Marriott World and POFQ, July 2005 - Grand Gathering - Emerald Isle - Coronado, Beach Club Villas, Dolphin - Mar/Apr 2007 - Mom's meet June '08, Grand Gathering # 2 - July '08 - Bought DVC July '08- First DVC trip to BWV June '09 - AKV Jambo Poly 2010, BCV June 2011, Disney Fantasy Eastern Cruise 11/2012, Disney Magic 11/2/14
Hillbeans is offline   Reply With Quote
Old 11-20-2014, 02:51 PM   #8
sunlover13
No Chef boyardee here!
 
sunlover13's Avatar
 
Join Date: Mar 2007
Location: Chicago suburbs
Posts: 3,904

We have 529 plans for the kids, but we max out our Roth IRA's first and then whatever is left over goes to the 529.

We figure the $ from our Roth IRA's can be used for anything, including education.
__________________
me DH DD DS
sunlover13 is offline   Reply With Quote
Old 11-20-2014, 09:53 PM   #9
disykat
DIS Veteran
 
Join Date: Jun 2000
Location: Washington State
Posts: 17,429

We funded our IRAs, we paid down on our mortage so it would be paid off before our oldest hit college, and we bought two years of prepaid tuition for each child. (We figured the two years they would both be in school would be the toughest!) We had about 2K for each of them in a 529, but those investments didn't make many gains. Our best "investments" were paying off our mortgage and the prepaid tuition plan.

Additionally, we lived off one income and only did "special projects" on my part time (now full time) income. Although we did take an occasional vacation etc., college investments and now college payments is the majority of those special projects.
__________________
DL - 1966,1974,2007 WDW 1987,
WDW/BRB 12/90 Honeymoon, DW/DCL 07/01 family 10th Ann, WDW 12/10 family 20th anniversary

Last edited by disykat; 11-20-2014 at 10:12 PM.
disykat is offline   Reply With Quote
Old 11-20-2014, 09:57 PM   #10
MrsPete
DIS Veteran
 
Join Date: Feb 2002
Location: USA
Posts: 11,855

I think pretty much everyone agrees that it's wise to save in your own name rather than the child's name. Even a very responsible 18-year old can justify the "need" for a motorcycle or a spring break cruise -- if the money's available to them.

Beyond that, I don't think it matters so much HOW you save; it just matters THAT you save.
MrsPete is offline   Reply With Quote
Old 11-21-2014, 05:10 AM   #11
Happy Snowman
DIS Veteran
 
Happy Snowman's Avatar
 
Join Date: Jul 2014
Posts: 996

We didn't do 529's because we didn't like to tie up money we may or may not have needed for education. I wish they would rewrite the law that once your children are out of college or when you are 65 you can take 529 funds at regular income tax and drop the penalty. We didn't end up needing much for college from savings between what the kids earned over the summers, scholarships and just disposable income it was covered. We set up some other accounts that were to be used if needed but those will now just be added back into our retirement plans.
Happy Snowman is offline   Reply With Quote
Old 11-21-2014, 06:58 AM   #12
aprilgail2
Ikea- Swedish for CRAP
 
aprilgail2's Avatar
 
Join Date: Feb 2002
Posts: 19,854

I use a 529- been putting money in since the day I got her social security number at a couple months old. My brother also has a 529 he contributes to for her. College at this point is NOT an option, it is something that my daughter is expected to go to. If she was a kid where a trade would be a better option for her that would be one thing but that is not the case.
__________________
The world is a magical place full of people waiting to be offended by something!
aprilgail2 is offline   Reply With Quote
Old 11-21-2014, 10:04 AM   #13
ZephyrHawk
I can nicker too, but I'm not nearly as embarrassed about that
Please don't ski with your kid on a leash
I firmly believe in ghostly figments of my imagination
 
ZephyrHawk's Avatar
 
Join Date: Feb 2007
Location: Michigan
Posts: 4,821

DD has two 529Ks; one her grandparents set up and one her father and I contribute to. I have not considered the potential penalties if they're not used for college, because they are for college - that's it. I have no desire for her to ever obtain those funds for any alternate reason.
__________________

Polynesian Village (1983), Polynesian Village (1986), Grand Floridian (1989), All Star Sports (1997), Disneyland (1998), All Star Movies (2000), Port Orleans - French Quarter (2001), All Star Music (2002), Disneyland (2004), Wilderness Lodge (2007), Pop Century (2010), Saratoga Springs (2013), and Disney Land and Sea Extravaganza - Fantasy/Villas at Wilderness Lodge (coming Dec 2015)
ZephyrHawk is offline   Reply With Quote
Old 11-21-2014, 11:14 AM   #14
aprilchem
DIS Veteran
 
Join Date: Jan 2013
Location: Virginia
Posts: 750

We use a UTM (Uniform Transfer to Minors) account. I have a job that provides free college tuition for our kids, so we need only to save money for room and board. We're on track to have about $100k in each of the kids' accounts when they turn 18, so the balance could be used to pay a downpayment on a house, a car, etc.

The benefit of the UTM is that the gains aren't taxed until they reach a certain amount, and then they pay a lower tax rate than capital gains.
aprilchem is offline   Reply With Quote
Old 11-21-2014, 11:19 AM   #15
soccerdad72
DIS Veteran
 
Join Date: Oct 2012
Posts: 1,196

We have a 529 for each of our sons right now, plus other investments that we could sell if necessary, as well as our Home Equity LOC.
soccerdad72 is offline   Reply With Quote
Reply



Thread Tools
Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

facebooktwitterpinterestgoogle plusyoutubeDIS Updates
GET OUR DIS UPDATES DELIVERED BY EMAIL



All times are GMT -5. The time now is 11:38 PM.

Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.

Copyright © 1997-2014, Werner Technologies, LLC. All Rights Reserved.