Hey All,
Was hoping to see everyone’s thoughts on this question. I have a 529 account for my 4 year old son with NY Saves (managed by Vanguard). Presently, there is $101,500 in the account and my wife and I contribute $550 per month into the account. Between Birthday and Christmas gifts there’s probably an additional $1,200 or so a year deposited as well which gets us to about $7,800 a year in contributions.
I can afford to contribute at least another $200 a month presently, probably more in mid 2025 when my wife gets her raise. I also know I can get a deduction in NYC for up to 10k per year for us. I am just wondering how much do you all assume is enough?
I feel it’s a lot of guesswork and assumptions that you can never really be sure of. In using the Vanguard planner I chose a local school; St. John’s University which is a very solid school, not Ivy League but about 54k a year in tuition presently. I figured this was picking the “middle ground” as an assumption; but who knows where he will go? What if it’s not local and then a dorm is required which makes the cost go up exponentially for a similar type school out of state?
I have used an assumed ROR of 5% to be safe but per Vanguard it’s essentially a wash as the inflation of tuition is about that anyway. Per the calculator this means I would need to save that additional $200 a month I can presently afford to get me to $750 a month to cover 100% cost of this school; which is what I was planning to start doing next month.
I have 50% of the money going into their Aggressive Growth Portfolio and 50% into the Growth Portfolio.
I’m concerned if I’m going about this right….Am I being ridiculous in my assumptions like the rate of return I’m using? Am I over saving or under saving? Just seems there are lots of variables to predict that are hard to determine when he’s only 4 years old. Any advice would be great. Thanks!
Was hoping to see everyone’s thoughts on this question. I have a 529 account for my 4 year old son with NY Saves (managed by Vanguard). Presently, there is $101,500 in the account and my wife and I contribute $550 per month into the account. Between Birthday and Christmas gifts there’s probably an additional $1,200 or so a year deposited as well which gets us to about $7,800 a year in contributions.
I can afford to contribute at least another $200 a month presently, probably more in mid 2025 when my wife gets her raise. I also know I can get a deduction in NYC for up to 10k per year for us. I am just wondering how much do you all assume is enough?
I feel it’s a lot of guesswork and assumptions that you can never really be sure of. In using the Vanguard planner I chose a local school; St. John’s University which is a very solid school, not Ivy League but about 54k a year in tuition presently. I figured this was picking the “middle ground” as an assumption; but who knows where he will go? What if it’s not local and then a dorm is required which makes the cost go up exponentially for a similar type school out of state?
I have used an assumed ROR of 5% to be safe but per Vanguard it’s essentially a wash as the inflation of tuition is about that anyway. Per the calculator this means I would need to save that additional $200 a month I can presently afford to get me to $750 a month to cover 100% cost of this school; which is what I was planning to start doing next month.
I have 50% of the money going into their Aggressive Growth Portfolio and 50% into the Growth Portfolio.
I’m concerned if I’m going about this right….Am I being ridiculous in my assumptions like the rate of return I’m using? Am I over saving or under saving? Just seems there are lots of variables to predict that are hard to determine when he’s only 4 years old. Any advice would be great. Thanks!
Statistics: Posted by VVenti7401 — Fri Oct 11, 2024 3:21 pm — Replies 9 — Views 455