Too much $$$ in a 529 plan???

[Zorro]

Thanks RazorCat. Your reply actually provided me with helpful insight.

[Scout333]

Great idea! We have been contributing for our grandchildren since they were born! The more you can front-end load the accounts the more efficiently they will grow! We put in $1000 for their first birthdays, $500 for 2nd, $250 for 3rd, 4th, 5th, and 6th birthdays. $100 each birthday after that. Amazing the growth these plans have had! Unfortunately I wasn't smart enough to front-end load my retirement accounts as well. LOL

[Bullitt]

The general rule is you can finance college but not retirement.

Saving for a 529 is a great idea and will even provide a state tax break, but shouldn't come before planning to knock down debts and save for retirement.

[Bullitt]

We've tried to tell people to give money for the 529 for the kids birthdays and Christmas, but they insist on buying them more crap. There's only so much stuff they can put on a wish list that they really want. 60% of it is just filler so everyone has something to buy. Amazing the stuff we've thrown out that was literally never touched since the week it was opened. Honestly, it makes me sad to see that kind of waste in this world when there are so many in need.

Note to grandparents: Every little bit for the 529 helps in the long run. Plus, you can reduce your state taxes (at least in NY you can.)

[Scout333]

Just an idea, the more you contribute when they are babies the more it will grow before they get to college and need the money! My wife and I started a program for our grandchildren that we contribute to on their birhdays every year which is front-end loaded. i.e. $ 1000 for year 1, 500 for year 2, 250 for years 3 - 6, $ 100 for remaining years until they start college, etc. My son has started 529 plans for each child which are doing very well. The more you put in early the longer it can be invested. Concept works great for retirement funds as well. Unfortunately I didn't learn this when I was in my twenties. Good luck TSPr's!