Hi Travis, appreciate the video addressing my questions in your previous video. The biggest selling points of the outside trading account for me are its flexibility of how we want to use its payout and no penalty, as you mentioned in your video, as well as it could potentially have a higher return, assuming (a BIG one of course) that I can outperform the return rate of the 529 saving account. But I think you nailed the point that in the grand scheme of thing, in a short run, the 10% penalty is probably something I shouldn't worry about and doesn't worth the risk and headache of trying to do trades on my own. I ran the estimates from Florida prepaid website and an interesting thing I noticed was that for Prepaid, its estimated payouts are $34k for 2+2 and $41,500 for 4 years; while its estimated college cost in Saving calculator is %54k, a higher number. After watching your videos and digging a bit further, I decided that a combination of 529 Saving (the main one) and a trading account is the best option moving forward. Thank you for your videos once again!!!
I don't have a video on this but would be useful. It's 5.64% of the assets if owned by the parent. So if you have 1k in qualifying assets (which is what the 529 plan is considered if the parent is the owner of the account) then you would be expected to pay $56.40 toward college.
Post questions on college savings...
Hi Travis, appreciate the video addressing my questions in your previous video. The biggest selling points of the outside trading account for me are its flexibility of how we want to use its payout and no penalty, as you mentioned in your video, as well as it could potentially have a higher return, assuming (a BIG one of course) that I can outperform the return rate of the 529 saving account. But I think you nailed the point that in the grand scheme of thing, in a short run, the 10% penalty is probably something I shouldn't worry about and doesn't worth the risk and headache of trying to do trades on my own.
I ran the estimates from Florida prepaid website and an interesting thing I noticed was that for Prepaid, its estimated payouts are $34k for 2+2 and $41,500 for 4 years; while its estimated college cost in Saving calculator is %54k, a higher number.
After watching your videos and digging a bit further, I decided that a combination of 529 Saving (the main one) and a trading account is the best option moving forward. Thank you for your videos once again!!!
Also, something I don’t think I mentioned in the video. If I don’t use all of it I’m just going to keep it for the grandkids.
Contributions to 529 plans can be deducted for states with income tax.
Yes, they sure can! For the states that allow it.
I am not a Florida resident. Am I still able to bypass the residency verification?
only other way is to have the bene live in florida.
Do you have a video that discusses how saving in a prepaid tuition or 529 plan affects FAFSA eligibilty?
I don't have a video on this but would be useful. It's 5.64% of the assets if owned by the parent. So if you have 1k in qualifying assets (which is what the 529 plan is considered if the parent is the owner of the account) then you would be expected to pay $56.40 toward college.