Check my math, please - IRA vs. 529

thumper1
Fri, 16 Mar 2018 01:50:45 +0000

Glad you liked the book!

Here is what I think you need to do. Look at your income, and expenses. Then figure out how much you really CAN and WILL pay annually for college. TBH, that number is far more important than any other number…and one your student should understand before applications are sent.

If that number is more than your EFC…woohoo…you can pay easily. If it’s less…we’ll…then maybe it’s not affordable.

If you have a top net cost you can sustain, it is important that your student understand that budget. Cast a broad net. Apply to colleges where he could garner significant merit aid which will not be income dependent in future years. Apply to some schools where you might get sufficient need based aid to make the school affordable.

BUT be clear that schools that come in well over budget will need to be dropped from consideration. That’s a hard message to convey to our kids…but if you need to convey that message, please do so before the applications are sent.

It sounds like you have a great kid…and that there are lots of good choices out there.

Oh…lastly…look at your flagship university and other instate publics…after all you do pay taxes to support these schools. Some have great honors colleges. Some have really well recognized programs in certain fields.

I guess what I’m saying is…keep your budget in mind…and keep an open mind.

Help your kiddo identify the characteristics he wants in a college.

And repeat after me…there is NO such thing as a dream school. There should be a bunch of colleges your kiddo would be happy to attend and are affordable…in your application pile.

Good luck…it’s a process… but you are on your way.