College Savings Goal

I shared my take on college, now let’s talk about the savings goal. As of August 2016, the savings goal is set at $100k for each kid (edited August 2016) $25k each kid by end of 2016 in our 529 accounts (which will turn into about $75k total by college time), plus $100k total by the time they are in college in a post tax account (not adjusted for inflation.  This (approx $175k in current dollars) should cover most of two 4 year in-state tuition, especially if they also get creative and take some AP classes before hand, etc.

We will achieve this by super saving $25k each by end of 2016 in their respective 529s, then easing the contributions thereafter to $3-5k a year, per child  redirecting those funds towards our post-tax account.

We are using the NY 529 savings plan for the 529 portion but we will revisit every year as we are not sure if we prefer to eventually then will just fund the rest with Vanguard (index funds) post-tax brokerage accounts which are more flexible or with our Roth IRAs.

 

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