2min chapter

White Coat Investor Podcast cover image

MtoM #189: Emergency Medicine Doc Hits $2 Million Net Worth and Finance 101: HSAs

White Coat Investor Podcast

CHAPTER

Building a College Fund: Strategies and Reflections

This chapter delves into the strategies for saving for children's education using a 529 plan, emphasizing the importance of early and consistent contributions. The hosts discuss the advantages of state tax deductions and consider the timing of ceasing contributions as their children's financial needs evolve.

00:00
Speaker 2
So
Speaker 3
how did you get that much money into your 529? That's awesome. We
Speaker 2
started just like the day they were born. So our state will give you a tax deduction on the first $6,000 you put in. So every kid gets six grand every year, no matter what. And it's just plugged in 500 bucks a month for both kids every month. We had a few years early on that we at the end of the year, we just sort of had this pile of money laying around that, you know, our financial plan said, What are we gonna do with this? Because one thing that Jim taught us to do is we made a detailed financial plan. And part of that was all this money at the end of the year starts giving up, okay, this is extra mortgage payment, this is extra kids college fund, Some of this money is just for an extra vacation kind of thing. So we had a few years that it was more like 10 grand a year going in. And then the rest of it has just been market. The market's gone up for the majority of my kids' lives. And so 50% of the money in there is not money that we put in. I think that the harder thing for us is going to be, when do we stop contributing? Should we stop? These new rules with putting money in your kids raw from their 529s, that landscape has changed the calculus because the original plan was, stop when the kids started elementary school. Our youngest one just said elementary school. But now we're like, well, do we stop? Do we just stop one kid? Because one kid has like 115, the other one has like 75 or whatever it is. So I don't know. That is still to be determined for us. But I certainly think that's been maybe a bigger surprise to me than hitting the net worth that we did was to say, holy smokes, we have so much money saved for our kids' college compared to what my wife and I had available to us, that that's a change your family tree step that I think we've taken.

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode