Randomopolis

[physicsfactor]

Any of you fellas have a 529 plan for your kiddo's college education? My financial guy is suggesting it.

 

[aiw]

Nope. In NC, since 2012, I think you have to pay taxes on it, so makes no sense for us.

 

[bfactor]

Maybe an ESA then? I think contribution limits are lower and you may need to supplement it, but they always looked like a better deal to me.

*I haven't studied it closely, for obvious reasons

 

[bfactor]

Maybe an ESA then? I think contribution limits are lower and you may need to supplement it, but they always looked like a better deal to me.

*I haven't studied it closely, for obvious reasons

OK, just looked over them and now it comes back to me. ESA withdrawals are tax free, but not initially deductible and you have more control over your investments. What you can do with the money at the end has more flexibility. The main downside is that it's limited to $2000 per year in contributions. But it's basically the Roth IRA of college savings options.

 

[bdotling]

Nope. In NC, since 2012, I think you have to pay taxes on it, so makes no sense for us.

It depends on your state, some states allow you to deduct your donations up to $10k against your state income taxes, some don't at all. But generally most (if not all) should allow any earnings from it to be tax deferred and ultimately tax free if it goes to pay higher education costs, so from that perspective is a good thing. If your state doesn't allow you to deduct against it, I'd look for the state plan that has the most comprehensive investment options because you can pretty much open up one in any state regardless of where you live.

 

[physicsfactor]

Yeah, I'm fairly certain that I cannot deduct contributions and have to invest taxed dollars, but all earnings and withdrawals are tax-free (provided they are used for education).

Looks like ESAs can also be used for K-12 expenses, but that $2k limit stinks. I would rather put a lot in early for better earning potential and before a kid (or kids) empties my wallet for the next couple of decades.

I guess my main issue for these plans is what happens to the money if your kid(s) ends up not needing/using it (full ride scholarship or just doesn't want to go to college)?

 

[bdotling]

Ya then you get taxed on the earnings and there is a 10% penalty as well (on earnings).

But if you plan to have more than one kid you can transfer over to the next kid easily (or nephew/niece or if you go back to school etc etc)

 

[physicsfactor]

BLOOD MOON

 

[physicsfactor]

My wife delivered little Cameron (named for Lhys) yesterday evening after a fairly lengthy labor. When it came time to push, ish got very intense. This is our first kid, and if I had to do that pregnancy and labor stuff, ain't no way I would be having a second child. I know it sounds stupid because I already understood that stuff is difficult, but I have a newfound respect for women after witnessing all that up close. I'm convinced the world wouldn't have any population issues if men had to go through that.

 

[ZackM]

Congrats.

 

[torontoduke]

My wife delivered little Cameron (named for Lhys) yesterday evening after a fairly lengthy labor. When it came time to push, ish got very intense. This is our first kid, and if I had to do that pregnancy and labor stuff, ain't no way I would be having a second child. I know it sounds stupid because I already understood that stuff is difficult, but I have a newfound respect for women after witnessing all that up close. I'm convinced the world wouldn't have any population issues if men had to go through that.

Congrats to you & your family, physics. Wish you all health & happiness.

 

[dkst0426]

My wife delivered little Cameron (named for Lhys) yesterday evening after a fairly lengthy labor. When it came time to push, ish got very intense. This is our first kid, and if I had to do that pregnancy and labor stuff, ain't no way I would be having a second child. I know it sounds stupid because I already understood that stuff is difficult, but I have a newfound respect for women after witnessing all that up close. I'm convinced the world wouldn't have any population issues if men had to go through that.

What a gift for Easter as well. Excellent! Congratulations!!!! Always glad to hear when delivery goes relatively smoothly. We tried to deliver naturally, but ran into some complications and ended up having to do a c-section.

 

[DukeNukem05]

Congrats, peef! A 4/20 miracle!

 

[rhfarmer]

Congrats man, stoked for you! My wife is due in 6 days, I'm a little freaked out.

 

[Thain]

Congrats peef! I'm going to have to get advice from you and farmer in about 6 weeks when my wife is due.

 

[physicsfactor]

Thanks, guys. Farmer and Thain, you guys will do great. Your wives do all the hard stuff, and you just try to be supportive and not pass out. (I got an "I'm close to passing out" feeling which would have been embarrassing since I see nasty medical field stuff at my job all the time.)

 

[dkst0426]

Congrats man, stoked for you! My wife is due in 6 days, I'm a little freaked out.

Congrats peef! I'm going to have to get advice from you and farmer in about 6 weeks when my wife is due.

You guys will be fine. Just be well-rested.

 

[aiw]

It's like there was some sort of Duke-Forum inseminating orgy, or something.


Congrats, pf

 

[physicsfactor]

Congrats man, stoked for you! My wife is due in 6 days, I'm a little freaked out.

Congrats peef! I'm going to have to get advice from you and farmer in about 6 weeks when my wife is due.

You guys will be fine. Just be well-rested.

This is what killed me. My wife's water broke around 11pm when we had just gone to bed; we were at the hospital by 12:45am; but she didn't start pushing until 6:30pm. So we had been awake for about 36 hours when she started pushing.

So my biggest piece of advice is make sure your wife doesn't go into labor at night. The morning after a full night's sleep is preferable. Piece of cake, huh? Good luck with it all, guys.

 

[Rollins]

congrats,

pix!?!