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College funds
#7620642
10/01/19 10:52 AM
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Joined: Aug 2009
Posts: 22,716
BigPig
OP
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OP
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Joined: Aug 2009
Posts: 22,716 |
Looking at starting a college fund for my 7 week old. Assuming he doesn’t get a scholarship and college isn’t free by the, what is a good program to use? Ideally I’d like to move one lump sum into it and not have to pay monthly, but also don’t want to have to deal with capital gains tax. What if he decides to go to an out of state school? What if he doesn’t use it (scholarship, military, etc)?
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Re: College funds
[Re: BigPig]
#7620661
10/01/19 11:19 AM
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Joined: May 2009
Posts: 10,425
Ramball36
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I would suggest spending it all on bitcoin.
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Re: College funds
[Re: BigPig]
#7620672
10/01/19 11:39 AM
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Joined: Oct 2012
Posts: 25,266
Creekrunner
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You're a good papa for starting now. Don't get financial advice on here.
...and have dominion over the fish of the sea, and over the fowl of the air, and over every living thing that moveth upon the earth. Gen. 1:28
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Re: College funds
[Re: BigPig]
#7620693
10/01/19 12:21 PM
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Joined: Sep 2008
Posts: 6,695
Cochise
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Does the Texas Tomorrow plan still exist? That is what my parents did. I got scholarships - first two years of school were more or less a free ride - I know they got a good chunk of it back. I think it locked in tuition rates on the start date of the plan...if I'm remembering right...it worked well for them/me.
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Re: College funds
[Re: BigPig]
#7620706
10/01/19 12:36 PM
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Joined: Dec 2006
Posts: 76
newbraunfelsraider
Outdoorsman
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Outdoorsman
Joined: Dec 2006
Posts: 76 |
Talk to a financial planner and invest in a 529 Plan. I used American Funds.
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Re: College funds
[Re: BigPig]
#7620714
10/01/19 12:44 PM
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Joined: Nov 2009
Posts: 91,416
bill oxner
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We had cash for Cathy but never had to use. College is expensive but teenagers in high school are not cheap. You don't have to come up with all the funds on the day college starts. Cathy already had her car. I paid the tuition and my wife gave her a monthly allowance. We never had to touch the savings through 4 years at Baylor and 3 years at UT Law.
Quail hunting is like walking into, and out of a beautiful painting all day long. Gene Hill
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Re: College funds
[Re: BigPig]
#7620773
10/01/19 01:32 PM
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Joined: May 2013
Posts: 4,091
CharlieCTx
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Posts: 4,091 |
What you're looking for is the now non-existent Texas Tomorrow Fund option where you bought x number of years of tuition. Most states don't offer that anymore since many lost money after conception given they came about in the late 90's internet stock mania. We bought in at $202 per month for 15 years ($25k) for 128 hours to any Texas public school, in 2002 I think it was. It will be a very good deal if my two finish at A&M and Tech (both at Blinn now) as they hope, not so much if they go to say UNT. The only plan I'm aware of for you to have flexibility of in-state or out-of-state or no school and a refund with a penalty, is a traditional 529 College fund. There may be individual schools who offer something, but you're clearly tied to that school. You forgot about the option of Elizabeth Warren getting elected, everything will be free. See your CFP. Charlie
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Re: College funds
[Re: bill oxner]
#7620786
10/01/19 01:56 PM
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Joined: Nov 2009
Posts: 91,416
bill oxner
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We had cash for Cathy but never had to use. College is expensive but teenagers in high school are not cheap. You don't have to come up with all the funds on the day college starts. Cathy already had her car. I paid the tuition and my wife gave her a monthly allowance. We never had to touch the savings through 4 years at Baylor and 3 years at UT Law. Cathy also got a National Merit Scholarship from Pfizer. Ditto on the Elizabeth Warren commit. It will all be free.
Quail hunting is like walking into, and out of a beautiful painting all day long. Gene Hill
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Re: College funds
[Re: newbraunfelsraider]
#7620823
10/01/19 02:40 PM
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Joined: Jul 2011
Posts: 9,972
Old Rabbit
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Talk to a financial planner and invest in a 529 Plan. I used American Funds. This is the same thing my wife and I have set up for our 2 granddaughters. Ours are set up with us as the owners with our grand kids as the receivers with our boys as our successors. We do a monthly transfer from my wife's substitute teaching fun money account. Your financial planner should be able to help you do a lump fund transfer.
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Re: College funds
[Re: BigPig]
#7620829
10/01/19 02:43 PM
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Joined: Jan 2009
Posts: 19,249
Judd
#1 Creedmoor Fan
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#1 Creedmoor Fan
Joined: Jan 2009
Posts: 19,249 |
Got one upper potential this thread has - Yoda
Don't let your ears hear what your eyes didn't see, and don't let your mouth say what your heart doesn't feel
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Re: College funds
[Re: BigPig]
#7620830
10/01/19 02:43 PM
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Joined: Apr 2011
Posts: 29,034
Western
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Used to be you could give your kids 10k a year tax free, Goldie may know if its still current or if it would even be advantageous to use that route for an investment.
If at first you dont succeed, then skydiving is not for you..
"Don't trust everything you read on the Internet"- Abraham Lincoln Dennis
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Re: College funds
[Re: BigPig]
#7620873
10/01/19 03:10 PM
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Joined: Dec 2010
Posts: 8,841
DocHorton
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Joined: Dec 2010
Posts: 8,841 |
Looking at starting a college fund for my 7 week old. Assuming he doesn’t get a scholarship and college isn’t free by the, what is a good program to use? Ideally I’d like to move one lump sum into it and not have to pay monthly, but also don’t want to have to deal with capital gains tax. What if he decides to go to an out of state school? What if he doesn’t use it (scholarship, military, etc)? No capital gains = 529. But 10% penalty and tax on gain if not used for educational purposes. Doesn't matter where he goes to school or what kind of school as long as it is accredited. Can also be transferred to other family members if it isn't used. The key to a 529 is not overfunding it. If you have money over a 529 you want to give them then I would start a Roth IRA as soon as they are old enough to work.
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Re: College funds
[Re: Western]
#7620876
10/01/19 03:12 PM
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Joined: Dec 2010
Posts: 8,841
DocHorton
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Used to be you could give your kids 10k a year tax free, Goldie may know if its still current or if it would even be advantageous to use that route for an investment. Correct, but now it is $15k, or $30k per couple.
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Re: College funds
[Re: BigPig]
#7620878
10/01/19 03:12 PM
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Joined: May 2007
Posts: 1,224
papa45
Pro Tracker
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Pro Tracker
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Posts: 1,224 |
As others have said, a 529 plan does everything you are looking for. Invested funds will grow tax-free, as long as the money is used for college or other after-high-school training. We set up accounts for each of our grandkids when they were born. If the beneficiary doesn't use or need the funds, they can be used for another relative. There is a penalty if the funds are not used for schooling. The school doesn't have to be in your home state, nor does the plan. Some 529 plans are better than others; better returns, lower expenses. I hear the Utah plan gets good reviews.
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Re: College funds
[Re: BigPig]
#7620895
10/01/19 03:26 PM
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Joined: Oct 2004
Posts: 39,542
redchevy
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My parents paid for my room and board and books I took loans for most of the rest. My debt was in no way crippling when I graduated, paid it off in 3 years. My wife did the same her parents paid her room and board and she had some but not much loans, a few scholarships and worked part time. We paid hers off before mine. We also bought a house cars etc. in that time.
I don't think college debt is as bad as people make it out to be if you get a job and actually try to pay it off. I know people who are 10 years older than me and still paying on theirs because they haven't made an attempt to pay it off. I don't know if my kids will go to college or a trade school or what so I plan on saving waiting and seeing.
It's hell eatin em live
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Re: College funds
[Re: bill oxner]
#7620909
10/01/19 03:41 PM
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Joined: Jun 2011
Posts: 33,948
Buzzsaw
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Posts: 33,948 |
We had cash for Cathy but never had to use. College is expensive but teenagers in high school are not cheap. You don't have to come up with all the funds on the day college starts. Cathy already had her car. I paid the tuition and my wife gave her a monthly allowance. We never had to touch the savings through 4 years at Baylor and 3 years at UT Law. Cathy also got a National Merit Scholarship from Pfizer. Ditto on the Elizabeth Warren commit. It will all be free. roller
SPACE FOR RENT
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Re: College funds
[Re: BigPig]
#7620926
10/01/19 03:58 PM
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Joined: Oct 2008
Posts: 16,771
68rustbucket
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Posts: 16,771 |
We bought the Texas Tomorrow fund for my son in 1995 for $8,000. He graduated from ATM in ‘13. We paid for 1 extra semester, room and board and books. He graduated debt free. Don’t know if it’s still available anymore.
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Re: College funds
[Re: 68rustbucket]
#7620942
10/01/19 04:13 PM
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Joined: Oct 2006
Posts: 18,554
ducknbass
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We bought the Texas Tomorrow fund for my son in 1995 for $8,000. He graduated from ATM in ‘13. We paid for 1 extra semester, room and board and books. He graduated debt free. Don’t know if it’s still available anymore. It's not available. Think they have like a 200 million dollar shortfall with what they already committed to. You made out like a bandit on that deal.
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Re: College funds
[Re: Judd]
#7621143
10/01/19 07:33 PM
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Joined: Jul 2007
Posts: 35,124
Brother in-law
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Posts: 35,124 |
Got one upper potential this thread has - Yoda Full
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Re: College funds
[Re: BigPig]
#7621193
10/01/19 08:49 PM
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Joined: Aug 2004
Posts: 17,721
Txduckman
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If you are eligible to contribute to a Roth IRA, you can pay for college expenses with it. And if you don't need it, it is retirement. A combo of 529 and Roth would be best.
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Re: College funds
[Re: newbraunfelsraider]
#7621201
10/01/19 08:58 PM
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Joined: May 2008
Posts: 4,696
pug
Extreme Tracker
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Posts: 4,696 |
Talk to a financial planner and invest in a 529 Plan. I used American Funds. ^^^THIS^^^
"My grandfather told me that there are two kinds of people: those who work and those who take the credit. He also told me to try to be in the first group since there was much less competition."
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Re: College funds
[Re: Brother in-law]
#7621294
10/01/19 11:36 PM
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Joined: Nov 2009
Posts: 91,416
bill oxner
THF Celebrity
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THF Celebrity
Joined: Nov 2009
Posts: 91,416 |
Got one upper potential this thread has - Yoda Full Broken record.
Quail hunting is like walking into, and out of a beautiful painting all day long. Gene Hill
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Re: College funds
[Re: ducknbass]
#7621297
10/01/19 11:38 PM
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Joined: Oct 2008
Posts: 16,771
68rustbucket
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Joined: Oct 2008
Posts: 16,771 |
We bought the Texas Tomorrow fund for my son in 1995 for $8,000. He graduated from ATM in ‘13. We paid for 1 extra semester, room and board and books. He graduated debt free. Don’t know if it’s still available anymore. It's not available. Think they have like a 200 million dollar shortfall with what they already committed to. You made out like a bandit on that deal. Yeah, I consider it my best investment. Pretty much quadrupled the initial investment they way I figured. I get lucky every now and then.
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Re: College funds
[Re: bill oxner]
#7621322
10/02/19 12:06 AM
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Joined: Apr 2009
Posts: 10,115
texasag93
THF Celebrity
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Got one upper potential this thread has - Yoda Full Broken record. Some people make plans, live below our means, save, want to do what is right 20 years from now instead of RIGHT NOW, and people call us one uppers.
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Re: College funds
[Re: texasag93]
#7621339
10/02/19 12:14 AM
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Joined: Nov 2009
Posts: 91,416
bill oxner
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Posts: 91,416 |
Got one upper potential this thread has - Yoda Full Broken record. Some people make plans, live below our means, save, want to do what is right 20 years from now instead of RIGHT NOW, and people call us one uppers. But not intelligent people. Just trollers.
Quail hunting is like walking into, and out of a beautiful painting all day long. Gene Hill
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