Just depleted the last of the 529 plans...

[Anonymous]

Oh wow- this really gives me hope. I put 5k (+2k each from a great grandparent) in each of my 3 kids accounts yearly and everyone yells at me saying it's not enough.

I too am okay paying the excess out of cash flow

[Anonymous]

How much return are folks getting in their 529s?

Feel like ours barely grows. We switched the equity distribution a year ago, as it seemed to switch to bonds waaaaay too quickly.

Still just about 4-5% now.

Only 40k for our 4th grader so far. We started late but are putting in $600 a month. Anticipate only having 2-3 years of state school saved at this rate.

[Anonymous]

Anonymous wrote:How much return are folks getting in their 529s?

Feel like ours barely grows. We switched the equity distribution a year ago, as it seemed to switch to bonds waaaaay too quickly.

Still just about 4-5% now.

Only 40k for our 4th grader so far. We started late but are putting in $600 a month. Anticipate only having 2-3 years of state school saved at this rate.

I absolutely agree. I feel like the fund managers should be called to task. They get sh!t returns compared to my 401k or any of my vanguard mutual fund investments. We're with VA529

[Anonymous]

Anonymous wrote:

Anonymous wrote:How much return are folks getting in their 529s?

Feel like ours barely grows. We switched the equity distribution a year ago, as it seemed to switch to bonds waaaaay too quickly.

Still just about 4-5% now.

Only 40k for our 4th grader so far. We started late but are putting in $600 a month. Anticipate only having 2-3 years of state school saved at this rate.

I absolutely agree. I feel like the fund managers should be called to task. They get sh!t returns compared to my 401k or any of my vanguard mutual fund investments. We're with VA529

That's not fair. They tell you the glide path, and you didn't have to choose the one matching the child's enrollment date. You could also have chosen any combination of stocks and bonds using the available funds.

Plus it's reasonable for retirement funds to be invested more aggressively because retirement is usually further away than college.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How much return are folks getting in their 529s?

Feel like ours barely grows. We switched the equity distribution a year ago, as it seemed to switch to bonds waaaaay too quickly.

Still just about 4-5% now.

Only 40k for our 4th grader so far. We started late but are putting in $600 a month. Anticipate only having 2-3 years of state school saved at this rate.

I absolutely agree. I feel like the fund managers should be called to task. They get sh!t returns compared to my 401k or any of my vanguard mutual fund investments. We're with VA529

That's not fair. They tell you the glide path, and you didn't have to choose the one matching the child's enrollment date. You could also have chosen any combination of stocks and bonds using the available funds.

Plus it's reasonable for retirement funds to be invested more aggressively because retirement is usually further away than college.

Unfortunately, we didn't know about these plan differences at the time. We signed up for a 529, as we knew it was something we were supposed to do. We weren't financially savvy then to know we were supposed to review them for different path types or what not. Only figured it out when I questioned why it was growing so slowly after a few years.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How much return are folks getting in their 529s?

Feel like ours barely grows. We switched the equity distribution a year ago, as it seemed to switch to bonds waaaaay too quickly.

Still just about 4-5% now.

Only 40k for our 4th grader so far. We started late but are putting in $600 a month. Anticipate only having 2-3 years of state school saved at this rate.

I absolutely agree. I feel like the fund managers should be called to task. They get sh!t returns compared to my 401k or any of my vanguard mutual fund investments. We're with VA529

That's not fair. They tell you the glide path, and you didn't have to choose the one matching the child's enrollment date. You could also have chosen any combination of stocks and bonds using the available funds.

Plus it's reasonable for retirement funds to be invested more aggressively because retirement is usually further away than college.

They switch from bonds to equities so quickly that the plans essentially earn nothing.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How much return are folks getting in their 529s?

Feel like ours barely grows. We switched the equity distribution a year ago, as it seemed to switch to bonds waaaaay too quickly.

Still just about 4-5% now.

Only 40k for our 4th grader so far. We started late but are putting in $600 a month. Anticipate only having 2-3 years of state school saved at this rate.

I absolutely agree. I feel like the fund managers should be called to task. They get sh!t returns compared to my 401k or any of my vanguard mutual fund investments. We're with VA529

That's not fair. They tell you the glide path, and you didn't have to choose the one matching the child's enrollment date. You could also have chosen any combination of stocks and bonds using the available funds.

Plus it's reasonable for retirement funds to be invested more aggressively because retirement is usually further away than college.

They switch from bonds to equities so quickly that the plans essentially earn nothing.

Oops, meant switch from equities to bonds so quickly that the plans essentially earn nothing.

[Anonymous]

Thank you so much for sharing, OP. My 15 has only $130k (8 k adding per year). We are thinking that if the market is down in the next 3/4 years, we will pay cash all & not taking out from 529. Maybe, we can transfer to Roth for my child or for us in the future... in the meantime, index fund all the way.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How much return are folks getting in their 529s?

Feel like ours barely grows. We switched the equity distribution a year ago, as it seemed to switch to bonds waaaaay too quickly.

Still just about 4-5% now.

Only 40k for our 4th grader so far. We started late but are putting in $600 a month. Anticipate only having 2-3 years of state school saved at this rate.

I absolutely agree. I feel like the fund managers should be called to task. They get sh!t returns compared to my 401k or any of my vanguard mutual fund investments. We're with VA529

That's not fair. They tell you the glide path, and you didn't have to choose the one matching the child's enrollment date. You could also have chosen any combination of stocks and bonds using the available funds.

Plus it's reasonable for retirement funds to be invested more aggressively because retirement is usually further away than college.

They switch from bonds to equities so quickly that the plans essentially earn nothing.

Oops, meant switch from equities to bonds so quickly that the plans essentially earn nothing.

I understand that. I'm just saying they tell you the asset allocations over time in advance, so I don't think they are to blame. You should invest according to your risk tolerance, not according to the investment name/target year.

[Anonymous]

I my had $75 saved when my kid started school (~5 years ago). I was a single patent who had to start late and contributed modestly for the first couple of years.

Anyway, I was contributing a lot by the time she started college and continued that until her last year. (So, don’t think you have to have it all by their start).

My kid also got scholarships that paid about half of her tuition. Then, her last two years she won other awards that kicked in about 25K.

She got thru with no loans, and about $14,000 she could put towards grad school.

(This was at a small LAC in PA, which gives generous merit aid).

[Anonymous]

Anonymous wrote:I my had $75 saved when my kid started school (~5 years ago). I was a single patent who had to start late and contributed modestly for the first couple of years.

Anyway, I was contributing a lot by the time she started college and continued that until her last year. (So, don’t think you have to have it all by their start).

My kid also got scholarships that paid about half of her tuition. Then, her last two years she won other awards that kicked in about 25K.

She got thru with no loans, and about $14,000 she could put towards grad school.

(This was at a small LAC in PA, which gives generous merit aid).

OMG $75K not $75 😂

[Anonymous]

Anonymous wrote:Oh wow- this really gives me hope. I put 5k (+2k each from a great grandparent) in each of my 3 kids accounts yearly and everyone yells at me saying it's not enough.

I too am okay paying the excess out of cash flow

well if you have the "income to pay excess out of cash flow" it can be better to invest now and let it grow tax free. At least up to the estimated cost of in-state for your kid. Hard to turn down the tax free growth IMO

[Anonymous]

Anonymous wrote:How much return are folks getting in their 529s?

Feel like ours barely grows. We switched the equity distribution a year ago, as it seemed to switch to bonds waaaaay too quickly.

Still just about 4-5% now.

Only 40k for our 4th grader so far. We started late but are putting in $600 a month. Anticipate only having 2-3 years of state school saved at this rate.

Don't use a "my kid is Age 5 and you pick how to invest for me" fund. Pick 100% growth funds until your kid is 14/15, then start to move it to less riskier investments with 25% cutback each year as you get closer to needing the $.

DO that and you will average the SP500/market which is a lot more than 4-5%. I can get 4-5% with CDs/MM accounts currently.

[Anonymous]

Anonymous wrote:Thanks so much for sharing, OP! Still in the early years here doing $150 a month (DS is 3) and wondering if that's enough, but the daycare years make it tougher to swing more. Appreciate this perspective - congratulations to you and your children!

Daycare is $$$

I always commented to my friends that day was (even before/aftercare at the Y) at the time was more expensive than their in-state tuition. IF possible, don't spend the newfound money when daycare is over. Take a chunk you don't get anyhow, and direct it into college plan if you can.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How much return are folks getting in their 529s?

Feel like ours barely grows. We switched the equity distribution a year ago, as it seemed to switch to bonds waaaaay too quickly.

Still just about 4-5% now.

Only 40k for our 4th grader so far. We started late but are putting in $600 a month. Anticipate only having 2-3 years of state school saved at this rate.

I absolutely agree. I feel like the fund managers should be called to task. They get sh!t returns compared to my 401k or any of my vanguard mutual fund investments. We're with VA529

That's not fair. They tell you the glide path, and you didn't have to choose the one matching the child's enrollment date. You could also have chosen any combination of stocks and bonds using the available funds.

Plus it's reasonable for retirement funds to be invested more aggressively because retirement is usually further away than college.

They switch from bonds to equities so quickly that the plans essentially earn nothing.

Oops, meant switch from equities to bonds so quickly that the plans essentially earn nothing.

I understand that. I'm just saying they tell you the asset allocations over time in advance, so I don't think they are to blame. You should invest according to your risk tolerance, not according to the investment name/target year.

NP. Even my bonds do better than my kids' 529 which is a mix of bonds and equity.