Cost of attendance

[tom1944]

What was the cost of attendance for 09/24 through 05/25 and what is the cost for 09/25 through 05/26?

I am trying to determine what I need in a 529.

Granddaughter will be starting college in 12 years and I will estimate the cost to be double what it is now. Estimating a 6% increase per year of current cost.

I am willing to save enough for 4 years of the cost of RU including room and board.

Thanks.

I just corrected an error- she starts in 12 years. She is 6 years old.

 

[retired711]

What was the cost of attendance for 09/24 through 05/25 and what is the cost for 09/25 through 05/26?

I am trying to determine what I need in a 529.

Granddaughter will be starting college in 12 years and I will estimate the cost to be double what it is now. Estimating a 6% increase per year of current cost.

I am willing to save enough for 4 years of the cost of RU including room and board.

Thanks.

I just corrected an error- she starts in 12 years. She is 6 years old.

Maybe this site will help you. Good luck to you and your granddaughter!

https://scarlethub.rutgers.edu/fina...tendance/rutgers-students-cost-of-attendance/

 

[tom1944]

Maybe this site will help you. Good luck to you and your granddaughter!

https://scarlethub.rutgers.edu/fina...tendance/rutgers-students-cost-of-attendance/

Thank you.

 

[RU at the shore]

What was the cost of attendance for 09/24 through 05/25 and what is the cost for 09/25 through 05/26?

I am trying to determine what I need in a 529.

Granddaughter will be starting college in 12 years and I will estimate the cost to be double what it is now. Estimating a 6% increase per year of current cost.

I am willing to save enough for 4 years of the cost of RU including room and board.

Thanks.

I just corrected an error- she starts in 12 years. She is 6 years old.

When my son was born, I immediately started contributing $250/month to a 529

He started in the fall and I will have enough to cover the whole thing. 👍

 

[tom1944]

When my son was born, I immediately started contributing $250/month to a 529

He started in the fall and I will have enough to cover the whole thing. 👍

I started early for my granddaughter and at 6 she has about $100,000. I am trying to figure the 4-year cost so I can decide to start using the monthly contribution for something else.

My daughter graduated in 2012, and her 4-year cost was $100k including room and board. I am calculating if there is no other aid or scholarship.
Using the post above someone graduating in 2024 the 4 years was about $140k. In 2036 when my granddaughter starts it looks like it will be a minimum of $200k with the 4-year total could be $250,000.

I am on track so I think I should be able to cease contributions at some point.

 

[RU at the shore]

I started early for my granddaughter and at 6 she has about $100,000. I am trying to figure the 4-year cost so I can decide to start using the monthly contribution for something else.

My daughter graduated in 2012, and her 4-year cost was $100k including room and board. I am calculating if there is no other aid or scholarship.
Using the post above someone graduating in 2024 the 4 years was about $140k. In 2036 when my granddaughter starts it looks like it will be a minimum of $200k with the 4-year total could be $250,000.

I am on track so I think I should be able to cease contributions at some point.

Quick math (that you already have done I'm sure) shows you at about 250k with 8% rate of return. So maybe go to the end of the year with your contribution program.

 

[tom1944]

Quick math (that you already have done I'm sure) shows you at about 250k with 8% rate of return. So maybe go to the end of the year with your contribution program.

I am conservative so I was using 6% rate of return on the investment and rate of increase in cost.

That gives me a doubling of current RU costs and my current 529 value.

I would rather estimate low on my end and high on the future cost.

 

[retired711]

I am conservative so I was using 6% rate of return on the investment and rate of increase in cost.

That gives me a doubling of current RU costs and my current 529 value.

I would rather estimate low on my end and high on the future cost.

That's a prudent strategy. But keep in mind there are limitations on how you can use unspent 529 funds without incurring a 10% penalty on top of taxes. One thing you could do with them is to set up a Roth IRA to start your child's retirement planning.

 

[jaydogsmooth1]

That's a prudent strategy. But keep in mind there are limitations on how you can use unspent 529 funds without incurring a 10% penalty on top of taxes. One thing you could do with them is to set up a Roth IRA to start your child's retirement planning.

If memory serves me correct, I think the limit you can transfer from the 529 to the Roth is 35k

 

[retired711]

If memory serves me correct, I think the limit you can transfer from the 529 to the Roth is 35k

You are correct -- thanks! The problem, as I'm sure you'll agree, is that it's hard to know whether one is undershooting or overshooting in setting aside money in a 529, and that overshooting is not necessarily good. https://www.fidelity.com/learning-center/personal-finance/529-rollover-to-roth

 

[jaydogsmooth1]

You are correct -- thanks! The problem, as I'm sure you'll agree, is that it's hard to know whether one is undershooting or overshooting in setting aside money in a 529, and that overshooting is not necessarily good. https://www.fidelity.com/learning-center/personal-finance/529-rollover-to-roth

Definitely a concern, but better to do that than to not have enough I guess
Hard to predict these types of things, especially now with grad school and the increase cost of just about everything

 

[tom1944]

I would rather have more than I need for the 4 years. Any balance could be used for the ROTH or graduate school or other educational programs