That's not a bad plan, but don't rule out other options. Many top private colleges offer substantial aid and helping them from the beginning does not mean they have no skin in the game. They could get jobs before college to save up, do AP courses, and paid internships.Great feedback, thank you. Our goal is for our kids to obtain an associates/2 years of college before we help. This will help us see they have some “skin in the game.” My wife and I both paid our own tuition and went to state schools.Using the Roth as your college savings vehicle is fine, but I would be sure you've done some research and projections into likely college costs and options, and think about what options you want your kids to have and what you're willing/able to contribute. At current prices, $75k would be enough to pay full COA (tuition, fees, room, board) for 4 years at regional public universities in many (but by no means all) states. Even with scholarships, the cost anywhere else (private, flagship public, OOS public) is likely to be more than that (outside of options like military or commuting) - this is before considering inflation. Kids can only borrow $27k total in direct federal student loans themselves; anything beyond that requires a co-signer. This is all not to say you must save more - just that if you don't, be prepared to pay more out of current income (yours or kids) when the time comes, co-sign for loans, or limit your kids' options fairly significantly.
Statistics: Posted by Harmanic — Sat Sep 28, 2024 6:51 pm — Replies 6 — Views 737
