Child's education savings plan - What's your plan?

Question

Hello everyone,

Recently we had a newborn and I don't know how to approach this situation - I'd like to know everyones thoughts on a child education savings plan.

Do you have a 529 plan?

Do you have a solid B&H property that you'll say "that's my childs property" ?

Do you max out in your IRA and say if needed, you can draw the original out of pocket invested amount (5k/annually) and use that?

Do you just say "F-That, I'll have created so much wealth and + cash flow, I don't care"

I'd love detailed and knee jerk resposes.

David H

Rob Myers · Answer

I have a 529 plan for each kid that I contribute the maximum amount of my state tax deduction.  If I would have started earlier, I could have marked a property as a potential sale once my kids get to college age, but at this point I am ensuring my retirement first then college education second.  It may seem selfish, but retirement is a longer term horizon and I can help the kids find a combination of methods to go to school.

I feel pretty strongly that they need to contribute something to the college effort as well.  I paid most of my way through school and I feel it's what helped give me the work ethic I have today.  Even if I could pay the whole bill they are going to pay for part of it.