Dual Military Physicians. Do we really need the 529

[jfoxcpacfp]

Does your state have offer tax benefits for 529 contributions? If so, that would be the only reason I would recommend and then only up to the max needed to get the benefits. If the bene's are paltry, might just skip.

[q-school]

There are obviously some tax advantages to the 529 you would forego including growth. Is there any consideration for graduate school? If you are fine with them taking on loans or cash flowing, I wouldn't say you need to. But most on here don't need to either.

Just one option.
I don't know enough about post gi bill to say more.

Good luck! As long as you continue to be good savers, you will have good options to choose from.

[MPMD]

If they really aren't going to need it for college (and sounds like they won't esp as you can easily cash flow incidentals on a 2 MD salary) why not just grow the nest egg?

I have several people in my circle who are in their 50s/60s with kids in 20s/30s who are giving their kids gift limit gifts each year with the express (and verified) purchase of the kids maxing out retirement accounts. If I were in your scenario that's what I would do, just build your personal wealth and give to your kids when they really need it as they start their lives and careers. Why partition the money off somewhere if you don't need it for a discrete expense?

[DMFA]

*Need?* Prob not.  Could just get by with taxable.  Change to low-volatility holdings or cash as time horizon nears like the managed 529s do.

[ghall24]

Somewhat unique situation.  My wife and I are both military physicians.  We both owe 7 years (USUHS couple) - ortho and internal med.  We both already elected to transfer our benefits for post-9/11 GI bill and therefore will have two post-9/11 GI bills for our kids to use when the time comes.  We don't plan on having more than 2, and even if we did I think 3 would be the max.  We have no student loans, car loans.  One mortgage that is being paid by a renter with profit.  We max out our ROTH TSP and ROTH IRA's each year, have a taxable Vanguard account and money left over.  My question is do we really even need a 529?  I have already decided no, but haven't committed to an alternative yet.  Currently we just have a large chunk of cash waiting to go in to whatever I decide to do for a "Just in case" college fund (i.e. the difference of what the GI bill covers, etc).  Ideally we could cover difference in cash based on projected income in 18 years...or we could use our Roth IRA's or taxable accounts worst case scenario.

So, would anyone still recommend a 529 plan?

If most agree that we do not necessarily need a 529, what would be the recommended place to put money for the kids?