Background: I am currently maxing my 401k every year ($18K + approximately $10K employer match) and have been blessed with a high income. I graduated with a bunch of student loans that are almost paid off and have a mortgage at a very low interest rate.
I am considering starting a 529 plan to start funding education costs for my (hopefully) future kids. I have no kids presently, but am married and we plan to try to have kids in the next 3ish years. I know that having kids isn't always as easy as people think, but there is no shortage of kids in my family (my brother just had a kid) that if we are unable to have kids / adopt there is no question that someone would be able to use the funds. My primary goal for the 529 is to pay for future college costs, but also as a way to reduce my taxable income. I am currently in the highest tax bracket, so I view the plan savings as having an immediate 40% return, which is basically impossible to beat.
Is there any downside to this plan that I'm not thinking of? Thanks!
Submitted August 22, 2017 at 09:19AM by KeepJerseyDirty http://ift.tt/2wuwxH5
