529 account question

[Mushe]

Good question! I asked the same maybe a year ago, but my kids are a little closer in age than your DD and your step kids - now 8.5 and 2 this month. The advice given here was to split it evenly, since we plan to do some cash flow if needed.

How much do you think you’d put in each year, if your goal is to get to $60k for the 13 year old? You could move all $14k to the 3 year old and then contribute only to your middle child’s account until you get to the goal, since you have less time for your middle child.

I’m sure there are a lot of different strategies for how to get to your goal, though!

[konapoppy]

Mushe - 2 this month? 😭😭😭

[ssmjlm]

I would probably take $10k and put it into the 13yo. Then put 4 into the 3yo. It's still over $500 each month to get the 13yo to $60k in 5 years, so I would hope for some good growth over that time.

Then when the 13yo goes to college you can prioritize the 3yo since you'll have 10 years left at that point.

I hope that math made sense.

[imojoebunny]

If you move the 17 year olds, could you all (including her working) cash flow her expenses for a non-traditional degree or get more grants and other aid, in addition to the often lower cost of a non-traditional degree? I don't think moving it to the 3 year olds account is a bad idea, but keep in mind the optics, if the 3 year old gets much more help than the 17 year old or 13 year old. Financial aid, in the form of grants, plays a big role in today's college cost. A 17 year old will most definitely have their 529 balance counted against them, but it might already be to late, depending on the look back period for financial aid (17 could be a junior or a senior). My nephews both got full rides to college because their dad doesn't make a ton (but at least 2X-3X the average for his state) and did not save much for their college, and they are good students, my brother's kids, similarly good students, did not get grant offers other than those available to all students, in large part because of my brother's high income, and their 529 plans are well funded. All are in college now, so it has been a learning experience for me, to see the difference in what tuition is based on income and assets. My nephews with full rides both go out of state, one to a private school and one to a public, and it is far cheaper than my niece and nephews in state cost. It is definitely a game worth playing, if you are not very high income.