We’re naturalized Americans with no family in the US, so we don’t have anyone to ask what they’re doing. Also, advice about it online is remarkably inconsistent, ranging from like $20 a month to $2000 a month. I understand that it’s because it is strongly dependent on personal finance and priorities, and nobody’s going to have a straight answer for me, but still, I am interested, what is everyone else doing, and what is the thinking that landed you on that number?
Obviously, I have no idea what my kids will want to be, so I can’t use that as signal. Doctor? Painting artist? Woodworker? Nobel-prize-winning physicist? Beats me!
Some details about my personal situation: I don’t really have any major financial goals except for this and my retirement (I own my house and it’s paid for). So, I can put some decent money in there, but this is competing with my retirement funds, and it’s important to me that I don’t depend on my own kids during my old age, so I don’t want to overdo it.
A thought I had, but I don’t know if it’s relevant: with the recent ability for kids to convert to a Roth IRA up to $35k with no penalties if they don’t use the funds, has that become the new golden number?
I’d recommend prioritizing your retirement first and foremost. If need be, your kids can take out loans for college but you can’t do the same for your retirement. With that in mind, I’d put what you need to toward that goal and then use any remaining funds toward the 529.
Yeah, that is a very good reminder. I’m definitely worried about being dependent on them someday, I really do not want that to happen. Thanks for highlighting how front-and-center that is.