Author Topic: Any Tax Differed Option other than a 529 for final years of Contributions?  (Read 442 times)

soccerluvof4

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So I have 2 in college and 2 to go. I have helped them out as much as I can/am Willing.

Currently remaining I have a Sophomore in HS and a 8th grader in which for both I am about 10k short of where I want to be to offer up the same amount as I did with the first two.

My concern or question is when one or both go off two school and the market is in a correction doing more damage by taking out of the 529 then perhaps another option by having less growth BUT still getting the deduction like I currently do.

Is this wanting my cake and eating it to or is there another way? I have my oldest already reset to the most conservative for some protection on his 529 but am just asking if there are other options.

Thanks

Proud Foot

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Would you be able to set up a 529 account with a local credit union and put it in either a higher interest savings or CD? Or add cash to the 529 and purchase a money market fund.

GoCubsGo

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I have a freshman in high school and I've put about 20% of what I'm planning on providing in a 529. It's invested fairly conservatively 70/30 Bonds/Equities.  I've got the rest of the money in a CD earning 2.5%. 

If the market drops 20+% in the next year or so I will move the rest into the 529 and probably invest it more like 80/20 stocks to bonds and hope an "average" recovery happens  and I'm able to ride the recovery up before I need the funds for tuition payments.  I wouldn't technically need the money until 2026 or so I'm gambling that the market will recover and that it won't crash down to 30-40% after I buy in.  I could always work another year and cash flow it if it goes terribly.  It's totally market timing I know but based on past bear markets and the fact that this bull market is old I think it might work....


soccerluvof4

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I have a freshman in high school and I've put about 20% of what I'm planning on providing in a 529. It's invested fairly conservatively 70/30 Bonds/Equities.  I've got the rest of the money in a CD earning 2.5%. 

If the market drops 20+% in the next year or so I will move the rest into the 529 and probably invest it more like 80/20 stocks to bonds and hope an "average" recovery happens  and I'm able to ride the recovery up before I need the funds for tuition payments.  I wouldn't technically need the money until 2026 or so I'm gambling that the market will recover and that it won't crash down to 30-40% after I buy in.  I could always work another year and cash flow it if it goes terribly.  It's totally market timing I know but based on past bear markets and the fact that this bull market is old I think it might work....


Would you be able to set up a 529 account with a local credit union and put it in either a higher interest savings or CD? Or add cash to the 529 and purchase a money market fund.


I thought about putting it as well into a CD or a MM fund etc.. but that doesnt help me with the tax part reducing income. Unless your saying that you can do a 529 like that? I have never heard of that. If I can start a second one in each kids name and do that , that would work out good.