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Financial Planning / Paying For College


Subject:  Re: 529 Even Necessary? Date:  6/25/2006  7:40 PM
Author:  random130 Number:  6698 of 8536

Already there, but the annual limits are a joke..

Right! College on $2000 a year! I can see the kids 15-18 years from now saying, "what were they thinking" when college is $25,000+ for a public university.

But I did a little calculation and figured that with $2000 a year (assuming no increase in the allowable contribution) and about 6% return, there would be enough to fund 2 years of college. If I do better, then one or two more years. (And in the ESA I'm funding, of the total returns, about 1-2% is dividends, so I only need to achieve another 4-5% gain in the stocks. Of course, I'm striving for better returns...)
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