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Talked to my sister about her 529 plan last weekend and now I wonder if I'm over-saving for college
She said she only put in $5,000 total per kid and is just letting it grow, while I've been dumping $200 a month into each account since birth, has anyone else scaled back after realizing you might be overfunding?
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fiona_west215mo ago
Overfunding? Not a chance. College costs are going to double by the time your kid hits 18, and that $5,000 from your sister won't even cover a semester of books at a state school. I'd rather have extra money in the account that can be rolled over to a Roth IRA later than be scrambling for loans when they're ready to enroll. That $200 a month is pocket change compared to what tuition will look like in 15 years.
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elliot_gibson275mo ago
$200 a month is nothing these days. That's like two trips to the grocery store. My kid is 7 and I already know college will cost more than my first house. Overfunding? Please. I'll take the extra cash and laugh all the way to the Roth IRA rollover. At least then it's not stuck in some 529 penalty trap if they skip college. Better safe than sorry with that savings account.
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jamie9405mo ago
Does your sister know what current tuition actually costs at the schools she's aiming for, or is she just guessing it'll work out?
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