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Saving for kids college .... instead of 529 you can start Roth IRA in their name


Spartan
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3 hours ago, k2s said:

 

+69

andukey i tried to open MPI (whole life insurance) for kids.. its much better than 529 and IRA.. tax free withdrawals 

But WA state ki Kids ki MPI plan support ledu.. see if texas and CA has it... @Spartan 

Very interesting .... can the money be withdrawn from MPI tax free before the kids turn 18?

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we do Roth IRA from the time kids started making money, and match to what they make. We didn't and most of our friends didn't take 529. Kids of friends who went to state school, stayed home so it was hardly 10,000-20000$ per year for instate tuition.  Kids who went out to private colleges fees were like 60-70k per year and some kids took loans. One income of ours is for kids education expenses these last few years and for next couple years too as both kids in college now. We are going to pay for undergrad and they will take loans for any further study. Probably it helped since we had kids young, and still in working years till they even do grad school after undergrad. Ideally it would be good if mortgage expense is not there by the time kids come to college.

529 is very difficult to plan as we don't know where exactly they will end up.

One good way to do it is also if one can sell something in India, and grandparents can pay the college tuition. I think it would go as gift and we don't have to pay taxes in US.

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Here is my understanding or findings:

1. We can with draw invested amount money not growth after 5 years. So we can use Roth IRA invested amount some what to college tuition fees.

2. They grow tax free and setup estate planning to Kids if money left.

 

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15 hours ago, naranjaX said:

Very interesting .... can the money be withdrawn from MPI tax free before the kids turn 18?

yes - the trick in MPI is not withdrawal, you take loan out of your premium and for loans you pay no taxes :D

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Just now, k2s said:

yes - the trick in MPI is not withdrawal, you take loan out of your premium and for loans you pay no taxes :D

anna vallaki only 5K customers anta..and 40M assets...nammochantava..  @k2s

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Just now, Spartan said:

anna vallaki only 5K customers anta..and 40M assets...nammochantava..  @k2s

they just started about 6-7 yrs ago.. so slowly they are growing.. 

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2 minutes ago, k2s said:

yes - the trick in MPI is not withdrawal, you take loan out of your premium and for loans you pay no taxes :D

And is there a set deadlines for those repayments or is it flexible?

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1 minute ago, naranjaX said:

And is there a set deadlines for those repayments or is it flexible?

you pay contributions for atleast 2 years.. after that optional... check out myMPI.com and ask Qs to curtis in insta or youtube or write email .. curtis will reply 

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Just now, k2s said:

you pay contributions for atleast 2 years.. after that optional... check out myMPI.com and ask Qs to curtis in insta or youtube or write email .. curtis will reply 

Sounds good

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On 1/6/2022 at 1:57 PM, Spartan said:

yup a time lo income takkuva untadi unless they are already doing some intern research job,,,which will pay for fee and no need to dig into IRA :)

My older one did paid internships, has other tutoring jobs too which pays for extra expenses, their trips with friends, restaurants, clothes, etc. Even that is a big help though. Major part of the tuition we pay, some books and travel to/from home also we pay for now in UG.  It is private school tuition, but if UC for people in California or state school it is lot cheaper. 

ROTH IRA is good and 50k-100k in 529 is good as that will be the minimum amt anyone will spend no matter wherever they send.  And not necessary that kids stay at home even if in-state. That would mean 30k per year atleast even if instate in today's dollars. Tuition fees go up 10% per year, unless something drastically changes. They used to be 40k per year when our kids were young, now they are 70-75k per year at private schools.

At that time if one can afford with cash flow, can pay not withdrawing from ROTH IRA as that will be easy inheritance without paying taxes by them or us. 

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7 minutes ago, Varshini2020 said:

My older one did paid internships, has other tutoring jobs too which pays for extra expenses, their trips with friends, restaurants, clothes, etc. Even that is a big help though. Major part of the tuition we pay, some books and travel to/from home also we pay for now in UG.  It is private school tuition, but if UC for people in California or state school it is lot cheaper. 

ROTH IRA is good and 50k-100k in 529 is good as that will be the minimum amt anyone will spend no matter wherever they send.  And not necessary that kids stay at home even if in-state. That would mean 30k per year atleast even if instate in today's dollars. Tuition fees go up 10% per year, unless something drastically changes. They used to be 40k per year when our kids were young, now they are 70-75k per year at private schools.

At that time if one can afford with cash flow, can pay not withdrawing from ROTH IRA as that will be easy inheritance without paying taxes by them or us. 

529 plan money use chesi india lo NRI quota medicine seat konocha?

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10 minutes ago, JackSeal said:

529 plan money use chesi india lo NRI quota medicine seat konocha?

no

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