TO THE HOT TAKE CANNON
Asking for some advice from the crowd regarding a college savings strategy. I have some extra cash that is earmarked to college expenses for my kids and was hoping for some advice re: 529 plans VS Roth IRA. I am fairly knowledgeable re: 529 plans and Roth IRAs:
- Roths have very limited contributions per year (5500/yr), but I doubt we'd really exceed that. 529s are effectively limitless re: contributions.
- Roths have flexibility: Roths can be used toward retirement if we don't end up using it for college, but I seriously doubt we won't use it for college. 529s are penalized if not used for college.
- Roth contributions are not tax deductible, 529 are in my state
- Roth earnings are taxed if withdrawn before age 59.5 (we would be 50-52 when the kids finish college) even if used for college. 529s are not.
- Roth doesn't count against you re: financial aid, but 529s are (how much? slightly AFAIK)
- Roths withdrawn for education expenses are subsequently counted as income for the child one year later... so it's better to hold off on using a Roth until Sr year. 529s don't have this issue AFAIK.
I'm just wondering how to judge my situation specifically before I solicit advice from my advisior whom I anticipate will push their Roth product (of course). Short summary:
- we have 2 kids about 10 years from college age. Total income less than 180k.
- we have about 70k saved in various 401k-type thingss for retirement.
- we are close to our maximum yearly 401k contributions (~10-12 out of 16k max or so per year) and have a modest pension in place at retirement.
- we are appropriately insured, as are the kids re: life insurance.
- No high interest (CC) debt.
- the NYS 529 plan is universally considered among the top 5 529 plans available, given that it's a vanguard product and very low expense fees (0.16-0.17%)
- I feel better diversifying our investments not only from our advisor's products, but also from the market. If a pre-paid option like the Mich. Ed. Trust were available, I'd prefer that. Just a bit gun shy about having so much retirement AND college funds linked to the market.
Thanks very much in advance.
Based on something like 5 years of mostly-lurking, I know 11W is not anyone's favorite here. However, I thought this was a particularly good article, especially in light of the immense consternation Wisconsin's loss on Monday caused on the board.
My personal favorite portions:
Conference pride started as southern bullshit and then infected the rest of the country via ESPN bullshit and lucrative television contract bullshit.
As for the non-southern regionalism bit, it's bullshit. Ohio State's national title win is a boon to Ohio State alone. Had Wisconsin beaten Duke Monday the spoils would have been all theirs. Conference pride is delusion wrapped in hubris.
Undoubtedly, this gives away my personal feelings on the matter.
I'm also a UVA fan, and I often hear my classmates talk about ACC pride, which I am not a big fan of either. That isn't to say I would never root for a fellow B1G or ACC school - it's just I wouldn't root for them just because they were in the conference.
For example, I did root for Wisconsin to win against both UK and Duke, but that wasn't because they were in the B1G - it's because I have an utterly irrational dislike of both of those teams. If it had been Wisconsin vs Florida, OTOH, I would not have had strong feelings either way; if forced to pick, I'd honestly have gone with UF, because Wisconsin's style of play is irritating (and yes, I fully recognize the hypocrisy of that as a UVA fan. What can I say? That's what make sports fun - I can be a total hypocrite and not feel bad about it!)
Anyway, I'm interested in hearing everyone's thoughts on this.
Tonight Founders takes on Four Peaks brewing out of Arizona, who somehow took out Dogfish Head to make the finals. Currently Four Peaks is leading 50.5% to 49.5% Voting ends at midnight.
Been meaning to do this for a while since we've entered the offseason. While there will be plenty of HARBAUGH!, recruting info (RIP Ace's fingers) and spring game chatter for a while yet, we're now waiting on the Utah game before any of the big 3 sports are playing again. As such, I know we've got quite a few car nerds on the site and I figured a car chat on mondays would be a good way to kick off the week. So in my best Linda Richmond voice I'll give ya a topic -
What's the car that you'd most want to own that you've seen in person? Why?
I've got a couple more questions in mind for future weeks - if you have good ones go ahead and ask em, or tweet me and I'll try to make them a future thread.
http://www.foxnews.com/world/2015/04/03/north-korea-reportedly-recruitin... I feel bad for the women that have to serve him.
It may be time to light the lights.ABC is filming a proof of concept for a revival of The Muppets, The Hollywood Reporter has learned.The Big Bang Theory co-creator Bill Prady is co-writing the script for a pilot presentation that sources say could be unspooled at May's upfront presentation to Madison Avenue advertisers. Sources tell THR that the project, if all goes well, could go straight to series.