Should I Max Out Retirement Now and Cash Flow College Later?

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Should I Max Out Retirement Now and Cash Flow College Later?

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Should I Max Out Retirement Now and Cash Flow College Later?
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Пікірлер: 153

@diceportz7107 2 жыл бұрын

I believe in Education too. I just don't believe it has to come in the form of a 5 year degree. Trade schools, apprenticeships, heck, even the military. My oldest got a heck of an education in the military, plus the travel and exposeure to other cultures.

@noahrose1able 2 жыл бұрын

Shoot it’s how I paid for my degree, and I’ve been to 3 countries :)

@jimroscovius 2 жыл бұрын

I wasn't in the military, but I went to college when I had a job that paid the tuition. We were able to pay for most of our kids' college and they covered the rest.

@yaserchow 2 жыл бұрын

My 4 years in the Marines Corps paid for my 4 years of college.

@jimroscovius 2 жыл бұрын

@@yaserchow That's awesome!!

@pwells10 2 жыл бұрын

This is a really good question. If our kids decide to skip college and learn a trade like welding, then that extra money in the college fund becomes taxable. If it's in a Roth it's always tax free.

@hoademo965 2 жыл бұрын

College funds is the best way to give a signal to our kids to want to go to college. totally agreed with Dave.

@ryankiel4895 2 жыл бұрын

One thing that these guys missed was that in many states, the money put into a 529 creates a tax shelter for that particular state. Indiana's 529 offers 20 percent tax credit for up to $5000. Many states have higher limits. I guess you could put up to that limit, and if there is more money, put the extra back into the Roth IRA.

@thehomeless_trucker 2 жыл бұрын

The caller never stated his age... 400k looks a lot better at age 40 than age 55.. plus student loans isn't the real issue.. overpaying for college Is the real issue. Anyone hear someone making 80k their first year our of college saying they can't afford payments on their 40k of student loans? No.. you hear it when those numbers are switched..

@lettuceboy2382 2 жыл бұрын

@@Austenfan177 he didn’t give his kids age either

@user-tb7rn1il3q 2 жыл бұрын

400k is still very good at 55, much better than most

@lettuceboy2382 2 жыл бұрын

@@user-tb7rn1il3q I’d be freaking out if that’s all I had

@thehomeless_trucker 2 жыл бұрын

@@user-tb7rn1il3q I agree it's much better than most... but that ain't saying much. I wouldn't say it's "very good" at age 55 unless he plans to live on very little in retirement or he will be forced to rely on other sources of income.

@user-tb7rn1il3q 2 жыл бұрын

@@thehomeless_trucker It will be a million by 65. With social security he will have more than enough as long as he has a paid for home and is debt free.

@qrizpol1767 2 жыл бұрын

He said he will be 62 once his son turns 18. So i think it will be safer to put all the money to retirement as he can access it tax free starting 59 1/2 old and use it to pay for college if needed.

@allimarieRISING 2 жыл бұрын

This is a good question.

@pwells10 2 жыл бұрын

Dave didn't know how to answer, the internet forums is mixed, yeah it was a great question. I never thought about this before.

@mxerb5912 2 жыл бұрын

529 you can use as a tax deduction on your state taxes Roth you can’t.

@sammyschaf 2 жыл бұрын

Whether we like it or not, there’s still millions of jobs that “require” a bachelors degree. There aren’t many 18-22 year olds that know exactly what they want to do for the rest of their lives. I don’t see these two things going away any time soon. Have some fun in college, make some life-long friends, learn to deal with the pressures and the commitment it takes to get that degree, and then figure out what career you want to be in. It’ll be worth it in the long run and it’s tougher to go back to school once you’re married and start having children.

@aolvaar8792 2 жыл бұрын

There were ~650 U.S. colleges in 1960, Now ~4500. I went to a school with a 30% graduation rate, The best and brightest being culled, It is not the college degree that pays well, It's the 115 IQ, that allows you to succeed, where others fail.

@rayjgold 2 жыл бұрын

I don't like the college fund idea. If your kids don't go to college, the funds are stuck.....your only other option would be to use itbto pay for someone else's kids college. Can't use it for yourself. Dave has this things where he just doesn't trust people to not spend their own money.....so he wants them to put it in a place where they are forced to use it for what he thinks they should use it. The fact is.....saving the money in the bank, individual brokerage acct index fund, or cash flowing college are all better than tying up money that will then have to go to the institutions Dave speak so negatively about in the first place.

@ClaxtonBay123 2 жыл бұрын

It’s the same money. Don’t overthink it

@moicus29 2 жыл бұрын

The 529 is an assumptive close... for the college administration.

@marcusarelius 2 жыл бұрын

We use 529's for our kids and their grandparents are able to invest in our kids using the 529's. I'm not concerned with over investing into them because I can transfer the 529 to their eventual kids one day. My hope is that one day I will be able to reward the kids if they earn scholarship money by taking the 529 money and using it to purchase a car or first home penalty free. It's their money and it will be used in some form to assist them or their eventual kids education or otherwise. Plus the annual tax benefits we receive in our state makes the 529 a no-brainer.

@christopherwells2787 2 жыл бұрын

The young adult is responsible for their own education.

@pwells10 2 жыл бұрын

I'm exponentially further ahead in life because I never had student debt. My kids will be taken care of and prepared for life as an adult. I expect my kids to pay for my future grandkids college. Its so much easier to pay for college when you have 18 years to save up for it.

@xtrey19x 2 жыл бұрын

@@pwells10 it’s also easier to not take college serious when you’re not paying for it or think you’re not paying for it. See the people who went to college only to work $50k jobs because their degrees are worth next to nothing.

@Bidenlost2020 Жыл бұрын

Agreed!

@moicus29 2 жыл бұрын

What if you really do need to use that money for something else the kid needs that isn't a qualified expense? If the kid is responsible for paperwork you might be "gifting" them a tax and admin headache.

@moicus29 2 жыл бұрын

Idk assumptive close is nice... but you don't even know this kid yet. Also not a big 529 fan, if the non-itelligent life at the school admin give ya wrong numbers, you can have all kinds of tax headaches.

@MarkVJenkins 2 жыл бұрын

fund retirement first. He has modest income. Apply for financial aid is an advantage to having assets in retirement accounts versus 529. At least that is what I have been lead to believe.

@wyattpotter2103 2 жыл бұрын

This was interesting If I was in the situation personally and couldn't max it all I'd personally put it all in there 529 but that's also because I have a ABLE account because I'm autistic shamefully but you can roll a 529 into a ABLE account if they don't use it all for college or whatever so I could still access it. But most people don't have access to ABLE accounts either so I'd say for most people the mix Would be a good thing but for me ABLE is going to be where a lot of my futchure retirement will be.

@superblump87 2 жыл бұрын

Nothing to be ashamed about.

@wyattpotter2103 2 жыл бұрын

@@superblump87 It's not really all that good. I've always been treated by a lot of people as less than human to say the least. I often wish I was dead I have a really hard time with punching myself in the head really hard really often if nobody is around.

@dec1slh 2 жыл бұрын

How old is the kid? How old is the caller?

@lettuceboy2382 2 жыл бұрын

It was never mentioned

@dec1slh 2 жыл бұрын

@@lettuceboy2382 I know, that's why I asked. The question can't be properly answered without knowing additional facts.

@lettuceboy2382 2 жыл бұрын

@@dec1slh agreed. With no context of time it’s impossible to answer this question

@thehomeless_trucker 2 жыл бұрын

If the kid will be 18 when the caller is age 62.. that means the kid was born when the caller was age 44.. so that's the minimum age of the caller.. but we know nothing else and I agree it's important to the decision.

@thehomeless_trucker 2 жыл бұрын

So many of us were told that college was the only way to success... that has been proven wrong time after time... after time. College is making less and less sense for the vast majority of people in our current economy

@edhcb9359 2 жыл бұрын

Our society is turning into two distinct camps: The highly skilled or educated camp and the low wage service sector camp. College is definitely not the only way to get into the first group but it’s the most common and produces a great ROI for the majority but not all people who graduate(notice I did not use the word “attend” because there is a big difference).

@thehomeless_trucker 2 жыл бұрын

@@edhcb9359 college was the easiest way to get into that first group up until the end of the early 2,000's... the recession turned that upside down and people started spending 80k+ to make 40k. Even becoming A doctor or a lawyer has low ROI's now. A doctor has to work into his 60's to out-earn a plumber net costs.. (you can look up that study)

@mxerb5912 2 жыл бұрын

@@thehomeless_trucker 😂 stop spreading lies. I did look it up. A doctor even the lowest paid, will blow the plumber out of the water in net worth no pun intended

@alinatamashevich3354 2 жыл бұрын

All college does is make you a good employee. Look at who dropped out and went on to become billionaires.

@alinatamashevich3354 2 жыл бұрын

@@edhcb9359 Use that diploma to seal that leaky pipe.

@saulgoodman2018 2 жыл бұрын

I think they messed up with the am and pm.

@harknowhere 2 жыл бұрын

You guys are in Tennessee right ?

@musicpro7278 2 жыл бұрын

No. They are in the United States of America

@khakibog2835 2 жыл бұрын

@@musicpro7278 No they’re on the continent of North America

@musicpro7278 2 жыл бұрын

@@khakibog2835 wrong they are on the planet called earth

@khakibog2835 2 жыл бұрын

@@musicpro7278 Do you mean the earth in the Milky Way? Or are you talking about the other one?

@musicpro7278 2 жыл бұрын

@@khakibog2835 the other one of course

@Mitzi73 2 жыл бұрын

No way. He will be 62 and may not be in a position to cash flow college later. He doesn’t have to send his kid to a private school. He may not have a job at 62. Fund it now.

@Rashaadthegr8 2 жыл бұрын

I have a question Dave never heard. If someone has a house but also has credit card debt and student loans debt is it a red flag to date them. They said they would pay the $7K debt next year but idk how much student loans they have.

@shalaywashington6326 2 жыл бұрын

You can date, just don’t marry until you have a good understanding of the financial situation. And let the other person know about your concerns financially when you get to a point in the relationship when you both are at least contemplating marriage.

@jackbenimble7301 2 жыл бұрын

EFFN RUN

@saulgoodman2018 2 жыл бұрын

No it's not.

@josephmcortez 2 жыл бұрын

he's said in past debt is not a reason to avoid marrying someone. just need to make sure your on same page about paying off the debt and taking on new debt. then you have to be able to accept that when you marry that's "our debt" if you can't get there or will hold it against the other person then it's a red flag for you and them. everyone has baggage they bring into a marriage just have to choose if you can deal w it.

@fitogabo9076 2 жыл бұрын

You should ask Anthony O’Neal

@saulgoodman2018 2 жыл бұрын

Yes, you should max out your retirement.

@alinatamashevich3354 2 жыл бұрын

Wow, Saul, did you sober up?

@djpuplex 2 жыл бұрын

Must be nice to have someone else pay for your college.

@mxerb5912 2 жыл бұрын

Yeah too bad your parents didn’t plan ahead

@ClaxtonBay123 2 жыл бұрын

That’s how it should be if your parents planned properly

@djpuplex 2 жыл бұрын

@@mxerb5912 When you give someone something they don't earn they usually don't appreciate it or make good use of it. I'm sure alot of people with college funds with social science degrees.

@mxerb5912 2 жыл бұрын

@@djpuplex nope I’m a millionaire now and my parents paid for my engineering bs degree from a basic state school. Plus my kids college will be paid for. Plus you’re contradicting yourself by saying how nice it would be then in the same breath saying how horrible it would be.

@shalaywashington6326 2 жыл бұрын

@@djpuplex That’s a dumb response. Just looking at the situation of their fellow peers, any college student would be eternally grateful to have a parent support them through college, even if it’s just rent.

@saulgoodman2018 2 жыл бұрын

You don't need a college fund these days. Lots of community colleges are free. And you can get the same education as a 4 year college.

@aisherwasher6959 2 жыл бұрын

I was under the impression that most community colleges are for associates degrees. At least that's how it is in my area

@saulgoodman2018 2 жыл бұрын

@@aisherwasher6959 So what? There's really no difference between an associates and a BS degree. Except what's written down on paper.

@aisherwasher6959 2 жыл бұрын

@@saulgoodman2018 for my degree in Statistics, my core classes went way more in depth than what was offered at my local community colleges

@saulgoodman2018 2 жыл бұрын

@@aisherwasher6959 Degree in statics?

@aisherwasher6959 2 жыл бұрын

@@saulgoodman2018 statistics, like math and probabilities. It's not the most common major

@razvanstan9295 2 жыл бұрын

7:00

@edhcb9359 2 жыл бұрын

If you really can cash flow college then do that. Just don’t shaft your kid into student loans.

@fkillah 2 жыл бұрын

Parents are not required to fund college. The only one doing the shafting is colleges with their inflated tuition and loans that are fully subsidized by the government

@edhcb9359 2 жыл бұрын

@@fkillah Parents are not required to fund college, no. But successful people who care about their kids usually can and do pay for college so that their kids can get a good start in life. And there is no need to pay exorbitant high costs. Nobody said that.

@fkillah 2 жыл бұрын

@@edhcb9359 you directly imply that if you don’t fund for your child’s tuition, you are shafting them into a student loan.

@edhcb9359 2 жыл бұрын

@@fkillah Well that is the case the vast majority of the time. We don’t have a student loan crisis because parents are paying for college, we have one because students are taking loans. What’s your point? 🤷🏻‍♂️

@fkillah 2 жыл бұрын

@@edhcb9359 my point is don’t blame the parent for the actions of a kid taking out a student loan or not. Is it that hard for you to understand?