Hi everyone,
So I'm am expecting father! Due date is in March and I thought I'd get ahead of the game by opening a 529 account in my name until my son is born. My company gets a 401k through fidelity so I set up my account through them as I like theyre projection tools and I thought it'd be easier. However, college is really expensive and through extremely conservative market predictions and really high expectations for where my son will go to school fideltity recommended I put 500$ a pay period into the 529. So I am doing that.
I'm right in the sweet spot where we can afford the lifestyle we want and still save but I can't allocate any more money to saving. Currently I'm saving 12% of salary into my 401k and getting an additional 6% match from my employer(effectively 18% total contribution).
I am concerned that the 529 is growing way faster than my 401k. I think that it will surpass my 401k as its more than 10% of what my 401k is now. The projection I did was super conservative and most likely way more so than it needed to be, but we do want more than one child so I'm hoping it will work in our favor. On the other hand, the 401k has much better return and I could use it for hardship in order to help with school. Should I stay the course and increase my 401k contributions as I get more raises? Or should I even out the contributions to be 50/50? Or some other contribution mix more heavily focused on 401k?
As a point of reference, I'm 27, married, and own a condo. I just completed masters and for which I'm expecting a pay bump(manager brought it up said he'd ask for more money a couple weeks ago but haven't heard back yet) which I can put towards the 401k. No student debt or auto loans etc.
Edit: spelling
Submitted September 29, 2017 at 08:23AM by Prustyworker http://ift.tt/2xKFbRi
