Started a 529 today

[jIM_Ohio]

I went 529 just for the state tax break. I can deduct the $2,000 from my income so I get an immediate ROI of 6.5%.

About the other question on the risk of a 529, I agree with that. If I had started one for my oldest daughter, I would be out all that money as she went a different route. She applied, was accepted and I was getting ready to send a check when all heck broke loose and she didn't go to college. In this case, it was good I was a poor saver. My 15 yo is on a better track, but I do not plan to put a bunch of money into her 529. Just the $2,000 / year I can get a tax break for. The rest will go in an investment fund of some type.

Tom

You know it only saves you $200 per year in taxes, maybe $220, depending on which tax bracket you are in. If you could pay off your mortgage before DD starts college, consider that as an alternative with less risk and more tax incentives (the federal tax credits for paying cash for college will outweigh the $500 or less in tax savings from the 529.

[corn18]

You know it only saves you $200 per year in taxes, maybe $220, depending on which tax bracket you are in. If you could pay off your mortgage before DD starts college, consider that as an alternative with less risk and more tax incentives (the federal tax credits for paying cash for college will outweigh the $500 or less in tax savings from the 529.

I don't qualify for the federal tax deduction or credits because my AGI is too high ($160k is the upper limit).

Would love to get my $460k mortgage paid off in 2 years. Not sure how that could happen, though.

Tom