How the hell are we supposed to retire?

hotsauce said:
@MadisonDan, you may have stumbled onto something. It looks like you can save some pocket change as long as you have a NY 529 plan. It looks like a lot of aggravation though.

It's detailed a bit in this forum post, though less than eloquently.
Also puffed up in this NJ.com article.
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well.. I didn't stumble on it. I've been doing it for 13 years now. prolly shudda mentioned that earlier. :shrug:
it's pretty simple. at the end of the year, I get a statement of my YTD contributions. I just slip the 12/31 statement in with my tax stuff. Gotta fill out NYS taxes anyway.
 
MadisonDan said:
I just slip the 12/31 statement in with my tax stuff.
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In my case, this is just moving info from one pile of my desk to another. Maybe this is the year I give up on doing my own taxes. House, baby, and complicated 529 all in one year my push me over the edge.
 
fidodie said:
I just moved some money into the bond market - i'm not sure this is what they meant by safe haven...

...this fund seeks to purchase what the advisor considers higher-rated junk bonds....
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Brave man. I have an automatic purchase setup every week of overall bond funds, but I can't make myself do any side purchases besides that. Rising interest rates scare me, although it may be priced in...
 
It seems so hard to put any money into equity markets right now. Prices just seem SOOO high. Since us mere mortals usually invest in diversified bond portfolios through mutual funds or ETFs which often behave like equities in the short term, they are often subject to the greater equity market price fluctuations.

Even though we're all saving for retirement and chip away at it every pay period, market timing can be big driver of returns. There have been a number of 2-3 day dips over the last year or two and buying in the dip has a material impact on returns. It's impossible to plan for that in a 401(k), but a little more possible in a ROTH.

@Santapez , I believe the Fed signaled they intend to raise rates over the summer but it will still be so incremental and money will still be cheap so I doubt it will have a material effect.
 
I've heard too much in the 529 can hurt your child's chances of financial aid. Is that an urban legend?

Also heard that anyone can open a 529 for your child not just the parents/guardians. Truth?

Lastly I've been told financial aid only looks at the parents/guardians finances. Myth?

So what does that mean?
 
qclabrat said:
Also heard that anyone can open a 529 for your child not just the parents/guardians. Truth?
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Not sure about opening, but anyone can contribute to a 529 up to a certain level annually.

Can't help you a lick on the others, I guess that's what I get for only passing the tax/law part of the CPA exam by 1 point (on the 3rd try).
 
qclabrat said:
I've heard too much in the 529 can hurt your child's chances of financial aid. Is that an urban legend?

Also heard that anyone can open a 529 for your child not just the parents/guardians. Truth?

Lastly I've been told financial aid only looks at the parents/guardians finances. Myth?

So what does that mean?
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It hurts financial aid because they expect you to spend it. Which is why you saved it. There is some % of kid assets. And some % of parents.

I saw a worksheet somewhere.

Yes, anyone can open one. I opened ones for my niece. And they provide a link so others can contribute.
 
fidodie said:
It hurts financial aid because they expect you to spend it. Which is why you saved it. There is some % of kid assets. And some % of parents.

I saw a worksheet somewhere.

Yes, anyone can open one. I opened ones for my niece. And they provide a link so others can contribute.
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that's what we also did, had the grandparents open for the kids
ultimately the colleges don't care how they get paid
we saved for our two kids from birth based on the estimate that an elite private school will be roughly $400K each, scary huh? Hoping they go to a public institution
about 25% in 529, rest diversified, would be done already, but the slow economy...
one recommendation, look into foreign investments
 
qclabrat said:
I've heard too much in the 529 can hurt your child's chances of financial aid. Is that an urban legend?

Also heard that anyone can open a 529 for your child not just the parents/guardians. Truth?

Lastly I've been told financial aid only looks at the parents/guardians finances. Myth?

So what does that mean?
Click to expand...

Save what you can - getting financial aid is dicey anyway. If you can afford mountain bikes, you probably won't get aid. But that depends on the school and a lot of other factors (minority status, income, where you are from, student talents and grades, etc).

Anyone can pay into a 529. That's the truth.

With who they look at - yes, they will most likely only look at parents and/or guardians. That said..

Depending on how old your kids are, I think the financial aid landscape is going to be nothing like it is now... but that's a guess. (Insert forward looking language disclosure here).
 
qclabrat said:
that's what we also did, had the grandparents open for the kids
ultimately the colleges don't care how they get paid
we saved for our two kids from birth based on the estimate that an elite private school will be roughly $400K each, scary huh? Hoping they go to a public institution
about 25% in 529, rest diversified, would be done already, but the slow economy...
one recommendation, look into foreign investments
Click to expand...

Don't forget about series EE or series I bonds. Tax free treatment for education expenses in most instances.
 
clarkenstein said:
Don't forget about series EE or series I bonds. Tax free treatment for education expenses in most instances.
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that's another 25%, they've been getting them from my inlaws and my brother since birth, they stopped a few years ago, but it's a nice contribution. And don't forget gold, though expect some volatility...
 
Unless it has changed in the past couple of years, if your parents make any kind of money you get nothing for financial aid. Doesn't matter if you don't live with them, don't know them, etc. The formula for expected family contribution with the FAFSA is oversimplified in that aspect.
 
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