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Old 01-29-2015, 07:14 PM
 
291 posts, read 249,333 times
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One five year old and 43k in contributions with a 50k FMV.

one popular school of thought is that s parent shouldn't hold a 529 for a child as beneficiary as this is considered parental resources for purposes of financial aid. Its better to have the grandparent hold the account with the grandchild as beneficiary. This way they don't factor it in.
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Old 01-29-2015, 07:24 PM
 
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Quote:
Originally Posted by Bradmilano View Post
One five year old and 43k in contributions with a 50k FMV.

one popular school of thought is that s parent shouldn't hold a 529 for a child as beneficiary as this is considered parental resources for purposes of financial aid. Its better to have the grandparent hold the account with the grandchild as beneficiary. This way they don't factor it in.

And the downside is the owner can take the money out and do whatever they want to with it
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Old 01-29-2015, 08:02 PM
 
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Quote:
Originally Posted by Bradmilano View Post
One five year old and 43k in contributions with a 50k FMV.

one popular school of thought is that s parent shouldn't hold a 529 for a child as beneficiary as this is considered parental resources for purposes of financial aid. Its better to have the grandparent hold the account with the grandchild as beneficiary. This way they don't factor it in.
My understanding is that this only "works" for one year (the last one), because once the grandparent pays for the student, it is actually calculated as the student's own income for the next year... which would put them in an even worse position from a Financial Aid standpoint.

Note: I may be remembering this incorrectly but don't have the time to verify right now... dinner awaits
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Old 01-29-2015, 08:26 PM
 
Location: MMU->ABE->ATL->ASH
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Started when my son was 11, When I adopted him, 18 now

GA has $2k/Year GA State Income Tax Deduction, So that's what I did. 12k in Contributions, 15K Value with the growth.
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Old 01-29-2015, 10:53 PM
 
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Quote:
Originally Posted by Lowexpectations View Post
And the downside is the owner can take the money out and do whatever they want to with it
I think it should go without saying that a person who would take a grandchild savings is probably not the best person to be considered an owner of the account. I was referencing the strategy for those who live above the bottom rung of society
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Old 01-29-2015, 11:05 PM
 
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Very little. I have almost 17 year old and maybe have $3,000 in his 529. We also have a 10 year old.
They will have to either go to state school, which we can afford to pay as we go (older one is on track to get decent merit aid there), or score big scholarships at other schools. They can also take out loans, if they have to, but I will be setting some limits on what they take out.
I think that our state school is great, so, if they don't like that option and want something different, they have to find ways to make those options affordable.
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Old 01-29-2015, 11:10 PM
 
Location: The analog world
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17: ~$65k
16: ~$58k
13: ~$42k

We will subsidize to a point from our annual income if expenses exceeds the sum of scholarship money and what we have put aside. They are on their own for grad school should they choose to attend.
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Old 01-30-2015, 12:09 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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30+ yr old kids, college educated (paid their own way) and in solid careers for may yrs (since age 22)

Zero -529 savings <$15k debt at Graduation time (consolidated for 20 yrs at 2.7% no hurry to pay that off)
a) much cheaper / safer for students to get loans for school than risk for parents. simple math FVM (If students are paying, they are less likely to linger / change their major / and are more engaged in a successful result.) Mine held profs and schools to a higher std)

1) Kids paid 100% cars / insurance / edu / clothes ... since age 12 (started producing income, and began their self directed ROTH IRA's) - Farm work / homeschool businesses / jobs / rental property repairs and maint as EARNED income.
2) Age 12 - Age 18 We matched every dollar earned to their ROTHS (up to limit)
3) IRA savings is exempt from FAFSA !!!! (yet accessible w/o penalty if needed for EDU)
4) Kids designed and built their own rural homes age 13 - age 16 (Family Homeschool projects) (Sold for ~ $70k profit each)
5) WA and HI State FREE FT college instead of High School Running Start - Wikipedia, the free encyclopedia is Big help, very good for most students. (faster to prime earnings / earlier to med school / research / time for a travel break (1 - 2yrs)...)
6) With Sallie Mae student loans, IRAs, home sales (after Fafsa), Work income during college, CHEAP apartments, and Ramen Noodles, kids managed well financially, (with ZERO parental financial support.)

They learned a lot more than 'college' classes. They were on their own and they rose to the occasion (with an expected degree of pain).

Being 'seasoned' investors with 6+ yrs experience evaluating companies and buying equities... they invested the equivalent amount of student loan value into investments (AAPL, NFLX, AMZN at the time). They increased equity positions about 600% during college.
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Old 01-30-2015, 04:55 AM
 
18,751 posts, read 13,517,559 times
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Quote:
Originally Posted by Bradmilano View Post
I think it should go without saying that a person who would take a grandchild savings is probably not the best person to be considered an owner of the account. I was referencing the strategy for those who live above the bottom rung of society

Well if you think this would only happen in the bottom rung you'd be wrong. Most people aren't ripped off by people they thought would rip them off
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Old 01-30-2015, 05:03 AM
 
Location: Texas
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$5k per kid per year.
Grandfather is doing something, too, but I dunno what.
Not going to count on it.
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