529 milestone reached

[disneysteve]

I just opened the statement from my daughter's 529 plan. It is mostly invested in an age-based portfolio that automatically adjusts as she nears college age. She turned 16 two weeks ago today and the statement indicated that her portfolio was transitioned from the moderate growth to the conservative growth portfolio. I guess that means college is looming. She is in 10th grade so we've got less than 3 years to go. Time to dial back the risk and preserve principle for the expenses that lie ahead.

[photo]

Excellent! Enjoy every moment you can with your daughter while she's still "little."

[disneysteve]

Excellent! Enjoy every moment you can with your daughter while she's still "little."

Yes, my "little" girl who is nearly 7 inches taller than her mother.

[Redraidernurse]

I feel like I'm going to blink and my 2 year old will be 16 and preparing for college. Your post just makes me all the more motivated to continue to save for his college.

[disneysteve]

I feel like I'm going to blink and my 2 year old will be 16 and preparing for college. Your post just makes me all the more motivated to continue to save for his college.

Yep. It does go fast. She took PSATs yesterday for the first time (though this round doesn't count for anything). Part of registering for that, though, is signing the release allowing your info to be shared with colleges so I'm sure the flood of college brochures will start arriving any day now.

[bjl584]

Congrats.

Steve,
Where do you stand on college expenses? Are you planning on paying the full cost of your daughter's college expenses, or are you going to have her "share the burden" so to speak?

When I went to undergrad school, my parents paid the tuition and room and board costs. I helped pay for my meal plans, I bought my own books, and I paid for my own car expenses such as insurance and gas. College was two hours away, so I wasn't working while I was in school. I had to use the money that I was able to save up from working over the summers and over the Holiday break in the winter.

[Joan.of.the.Arch]

How 'bout that! It is a balm to know that the education expenses are well covered, isn't it?

When I first registered here, my son was probably finalizing his decision on where to go for college. Scholarships took care of nearly everything --thank goodness, because we had not been able to save for college. We just had to chip in a little, but less than having him at home. Now he is in a PhD program with a stipend that covers living expenses and I don't worry about him money-wise, except in as much as I worry about the country's future as a whole. Nor does he have to worry that he will be asked to help support his parents in their old age.

Kids get older. Time flies, but money has a way of doing that, too, if we don't do what we can to provide for the future.

[photo]

Now he is in a PhD program with a stipend that covers living expenses and I don't worry about him money-wise,

My eldest is in the same boat. Both your son and mine are going to have doctorates and no debt. That already makes them ultra wealthy. And when they continue their stipend budgeting with professional salaries for a little while, they really will be secure.

[disneysteve]

Steve,
Where do you stand on college expenses? Are you planning on paying the full cost of your daughter's college expenses, or are you going to have her "share the burden" so to speak?

I really don't know for sure. It will depend a lot on where she goes to school. No matter what, we will expect her to contribute either from working, savings or an annuity she will start receiving when she turns 18 from an old legal case. I don't want her to have to work during school if it in any way interferes with her studies, but certainly working over the summer is an option. I figure we'll cover most of the education costs and let her pick up the spending money, clothes, activities, etc. Even if she goes to a state school, I don't think we'll be able to pay 100% of costs because that would still be upwards of 100K here in NJ and I doubt we'd qualify for any financial aid.

[moneybags]

Yep. It does go fast. She took PSATs yesterday for the first time (though this round doesn't count for anything). Part of registering for that, though, is signing the release allowing your info to be shared with colleges so I'm sure the flood of college brochures will start arriving any day now.

Excellent PSAT results for juniors, can lead to big $$$ for college. Several colleges offer full-rides (or varying degrees of scholarships) for National Merit Scholars (which are determined by PSAT scores and subsequent application). There is also money available for National Merit Scholars from corporations or the National Merit Corp itself. The cutoff PSAT score for NJ was 223 this year (this number can change each year), so if you think your daughter has a shot, get her a review book for next year to up her score.

[disneysteve]

Excellent PSAT results for juniors, can lead to big $$$ for college. Several colleges offer full-rides (or varying degrees of scholarships) for National Merit Scholars (which are determined by PSAT scores and subsequent application). There is also money available for National Merit Scholars from corporations or the National Merit Corp itself. The cutoff PSAT score for NJ was 223 this year (this number can change each year), so if you think your daughter has a shot, get her a review book for next year to up her score.

Thanks for that info. I've been trying to impress upon her the importance of the test (not this year but next year). She seems to be under the impression that PSAT scores don't count for anything and ony SAT scores matter. I'll definitely let her know that PSAT scores do, in fact, matter and could help her financially for college.

[bjl584]

Thanks for that info. I've been trying to impress upon her the importance of the test (not this year but next year). She seems to be under the impression that PSAT scores don't count for anything and ony SAT scores matter. I'll definitely let her know that PSAT scores do, in fact, matter and could help her financially for college.

From what I remember, you are able to take the SAT test over and over again. As many times as you like. Potential Universities and colleges will only consider your highest score.

[moneybags]

From what I remember, you are able to take the SAT test over and over again. As many times as you like. Potential Universities and colleges will only consider your highest score.

Yes and you can also take the ACT. Some students do better on one or the other. All colleges now accept either the ACT or the SAT.

[Redraidernurse]

Thanks for that info. I've been trying to impress upon her the importance of the test (not this year but next year). She seems to be under the impression that PSAT scores don't count for anything and ony SAT scores matter. I'll definitely let her know that PSAT scores do, in fact, matter and could help her financially for college.

I wish that someone had impressed this upon me. While my friends were taking the PSAT I instead opted to take the SAT and scored great - but scholarships most often look at PSAT scores. I wish I had known this.

[moneybags]

I wish that someone had impressed this upon me. While my friends were taking the PSAT I instead opted to take the SAT and scored great - but scholarships most often look at PSAT scores. I wish I had known this.

I don't understand why schools don't share this information. At my daughter's school, there was no mention of this either or any encouragement to take the test. I read about it online. There are other scholarships offered at colleges, but this program is all about the scholarships.