I have one child who is 12 years old. I have a 529 plan for her. No other kids and I have a masters degree already, so no plans to go back to school myself. Current balance of the 529 is just under $88K and I am contributing $600/month.
My child’s other parent (we’re not together) also has an account with about $20K. Technically, we would be equally responsible for college expenses but if I have more saved then we would use my account first and work out payment separately, since I have no other children and they do.
I know it’s a fortunate position to be in, but I’m concerned about having too much money in the 529 then my child will need. Our local, in-state university would be under $80K for 4 years (at today’s tuition cost) since room and board wouldn’t be needed. Of course, a private college could be much higher.
So I guess what I’m asking is whether there’s a point where it makes more sense to be investing in a different type of account instead of a 529. I could stop contributions, accrue another $35Kish in compound interest in the 6 years until she starts college, and put $600/month toward a taxable account that I could tap into if needed.
I’m just not sure whether the risk of having excess in the 529 is worse than the risk of needing to pull from a taxable account. Thank you for the help.
Submitted October 11, 2024 at 08:18PM by SoloSeasoned https://ift.tt/pJhMqGa
