College savings plan

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College savings plan

Рет қаралды 67,456

John Liang

6 ай бұрын

Пікірлер: 59

@nicksmith8141 6 ай бұрын

I opened both a 529 and a custodial brokerage for my son. The brokerage has far outperformed the 529, but at least I don't have to pay taxes on the gains.

@jengomez6115 5 ай бұрын

So I think if financially feasible, parents should open both account then. 👍

@bChipps 5 ай бұрын

So I am correct that a 529 has no tax implications since like a Roth account you are already paying tax on that fund?

@nicksmith8141 5 ай бұрын

@bChipps as long as you use the funds for qualified expenses like tuition it works like Roth IRA and is tax free.

@drbh6331 4 ай бұрын

You had to open 529 growth it returned 12 percent for past 10 years

@MRTZ1897 6 ай бұрын

As a European, watching American content like this is fucking insane

@cheonankougba9068 5 ай бұрын

Your wealthy don't find legal loopholes??

@boondocksaints2011 5 ай бұрын

@cheonankougba9068 I think what he means , is us Europeans have free college.

@JericMesa-MRA-1462 6 ай бұрын

THIS WILL COME HANDY SOON

@danielhe551 6 ай бұрын

Can’t open for unborn child. No SSN yet

@fettyguapo 4 ай бұрын

That’s why you use yours as the accounted holder then when they are born you add them…

@LVLocalTourists 6 ай бұрын

Nice! Now, where do i find $35k? Hahaha :)

@marccatamio 6 ай бұрын

My college savings tanked and became soap 😂

@DavidVillaTorre 6 ай бұрын

Or you could also get a high yield saving account with 5% APR if youre looking for a safer option

@LilFletch926 6 ай бұрын

Very unlikely you'll see 5% for a prolonged period. Likely closer to mid 2s in the long run

@bloxer9563 6 ай бұрын

Unnecessary

@freashswagg1 6 ай бұрын

@@LilFletch926humans and these companies and organizations

@freashswagg1 6 ай бұрын

@@bloxer9563😂

@DavidVillaTorre 6 ай бұрын

@@bloxer9563 its unnecessary until the economy goes into a downturn period and that fictional 8% annual return goes into the negative

@dutramtamang3129 6 ай бұрын

In 20 years becasuw of Inflation, that $163k will be around the same like the $35k now..

@lavaregion6968 6 ай бұрын

inflation is at 2-3% yearly so $163K will be worth way more than $35K now

@Okkebeltman 5 ай бұрын

Using an inflation calculator, comparing 2004 and now, 35k 20years ago is similar to 57k now. ABout 60% inflation is still quite abit

@badopena8521 6 ай бұрын

But what if my child doesn't want to go to college? Is that money gone, or can it be used for a down-payment on a house?

@KomitLive66 6 ай бұрын

If you do exactly what he said... and don't touch the money until the kid is 45+ they will be a millionaire anyway...

@freashswagg1 6 ай бұрын

@@KomitLive66😂😂😂😂😂😂😂

@isaac4273 6 ай бұрын

If your kids don't want to go to college, they could use it to fund their education in trade school, or open up a business. That's what I'd do.

@melissareece8656 6 ай бұрын

529E can only be used for education

@stuartluff3581 6 ай бұрын

My state (I am in Maryland) and some others will allow onto roll unused 529 funds into a Roth IRA for your child if they decide not to go to school.

@iclimbeverything2990 6 ай бұрын

Non managed index funds historically perform about 80% returns after 10 yrs

@theycallmenyquil8064 6 ай бұрын

And still wouldn't be enough in 18 years

@FunkYourLife 6 ай бұрын

...Which won't be enough for his/her education.

@Summer-Kid 6 ай бұрын

Yeah, but thats without adding anything. Assuming you did add money regularly, you could maybe double that money.

@tidbit1877 6 ай бұрын

Most post secondary education will be free in the future; it should have never cost anything to begin with; the boomers certainly never paid for all those high schools!

@nndjkn9255 6 ай бұрын

Crazy that Americans have to have 100k saved up for college. Any other developed country would just cover the majority of college costs through taxes, and definitely has way more say in how much colleges cost and spend. It’s common students pay 1-2k a year max

@utoobia6872 2 ай бұрын

Here in the US, I was paying $2k for one class for one semester back in 2010. Since I took 3 classes, it was $6k. Not sure what it is now.

@Fifth_Entertainment 5 ай бұрын

And in 20 years that $163k is equivalent to $15 in today market 😅

@zacharyrivera7228 5 ай бұрын

And when they decide not to go to collage game over instead invest it into acorn stock plan put money in yourself let it grow and be able to withdrawal whenever you want

@tidbit1877 6 ай бұрын

And all these "savings" tips are totally pointless unless you have no mortgage and have no debt of any kind. The only time it's advantageous to put money into an educational savings fund of any type(or retirement fund) is when the government offers to wave taxes, offers to match your payments or gives you a one time bonus to start the fund. Other than that you will basically never get 8%; more like 3-5% which is less than the interest on your mortgage. That's why you should always focus on becoming debt free as soon as possible. (In very rare instances you can leverage(go in debt) your finances to invest in say property or a business that you are confident will make more of a return on investment. For example starting a business; buying land for that business, or buying real estate that you plan to rent out, the rent pays for the mortgage interest and principal and other costs so it basically costs you nothing to have and the land value increases at 7% a year on average, plus you can earn a little extra if you do the maintenance yourself)

@user-kd7ch1be6u 6 ай бұрын

I'd just move to europe if i was living in the us and plannung to have a child

@nathanpatera9836 6 ай бұрын

8%? That's very unlikely nowadays.

@TimCortesi 6 ай бұрын

If you dump the money into the S&P 500 for 18 years, you can expect an 8% average annual rate of return. Some years it will be negative, and other years it will be in the double digits, but on average it'll be around 8%.

@thetaylorholt 6 ай бұрын

What degree did you get to learn this? Or what book? I want to learn business and banking.

@patfisher3004 6 ай бұрын

Yeah, if my kid wants to go to college, that's on him. My parents didn't pay for mine....I got a full ride via ROTC. Used my VA benefits for a free master's degree too.