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2012
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Ahh.. nice. Just one year from myself. Although I wasn't one of the duals
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The GI Bill isn’t going to cover everything
Agreed.
How much does the GI Bill provide for:
- rent?
- food?
- gas?
- new phone?
- new computer or 2?
- 4+ years of books?
- tuition?
I'm glad the US has the GI bill, but I can't imagine it covers all that would be needed.
(I googled - it doesn't.).
Ergo: Why would you not use the 529? unless you plan to cashflow the difference, or have the student take on loans.Comment
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This assumes your are eligible for the yellow ribbon program, the school has an agreement with the VA, you get it when applying...and it doesn't account for education beyond the 36 months allotted. The 529 has pros and cons. But if I were a betting person I'd wager that children of physicians have a higher tendency to enter degree programs beyond undergrad. And this is where the 529 has its advantages. I have little interest in my children taking on debt, or cash flowing something increasing at a 4% CAGR.Comment
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The GI Bill isn’t going to cover everything
Agreed.
How much does the GI Bill provide for:
– rent?
– food?
– gas?
– new phone?
– new computer or 2?
– 4+ years of books?
– tuition?
I’m glad the US has the GI bill, but I can’t imagine it covers all that would be needed.
(I googled – it doesn’t.).
Ergo: Why would you not use the 529? unless you plan to cashflow the difference, or have the student take on loans.
You assume that we are not putting any financial responsibility on our kids during college. They won't even be paying for their own gas?? I don't want to get in to parenting discussion, but the premise of your post says a lot about how you are allocating your fortunate wealth to your children. I agree that taking on loans is not the best idea, but sometimes necessary. I am planning to pay for 4 years of undergraduate education to give them a head start towards their own financial success. What they choose to do beyond that is up to them. Sure, I will likely have the money to pay for their graduate school or failed semesters at undergrad, but that doesn't mean they will know that, nor will we choose to provide for those things unless we decide it makes sense at that time. Therefore I do not feel it wise to lock up hundreds of thousands of dollars in a 529 when I already have hundreds of thousands of dollars of benefits to use because my wife and I decided to serve our country instead of taking on financial debt. Why would I risk having to pay 10% fee plus 25 or 35% income tax on an unused 529 plan when I could invest taxable and pay 15% capital gains or Roth and pay only income tax (25 or 35%) IF I needed it. I understand I could pass to my grandkids or to any other family member, but I don't see that as a sole justification to invest in a 529 vs. another vehicle...plus you often have to pay a state tax or generation skipping tax when changing a beneficiary like that.
SO just so everyone knows, I do have a 529 for grandparent/family/birthday donations, plus some extra money I have thrown in here and there. That will grow tax free and I can probably find a use for it for one or two of my kids...but we would be talking about 5 figures at the most. The premise of the post was regarding funding a 529 with budgeted funds to meet some specific goal. My only goal to meet is undergrad for my two kids which I already have via two post-9/11 GI bills. Therefore everything else goes towards retirement or a future hunting cabin.
So the moral of the story is, if your goal is to fund undergrad AND graduate, plus possible money for your grandkids and nieces/nephews...then sure, you need a lot of money in a 529 even if you have post-9/11 benefits. It is a matter of picking a goal and sticking to it.
FYI: Here are the facts for the Post-9/11 GI bill.
- 36 months of tuition paid in full with a max amount being the most expensive state school in your state
- This is 36 months of academia. Therefore 4 years at a 9-month academic calendar (standard) is covered
- Allowance for housing at an E5 w/ dependents rate (~$1800/month)
- This is included whether or not you are retired or active when your child is using the benefits
- [I just spoke with VA benefits rep on 03NOV2017]
- Annual stipend for books/supplies (up to $1000)
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- 36 months of tuition paid in full with a max amount being the most expensive state school in your state
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