Are 529 plans considered an asset when determining net worth if you are the owner?

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  • #85384 Reply
    Abby

      Give me some things to consider.

      #85385 Reply
      Aaron

        Yes, they are. But in terms of your own financial well being and planning things like retirement id suggest being more conservative and not include.

        #85386 Reply
        Josh

          I would consider it part of your net worth but not for retirement

          #85387 Reply
          Colin

            Net worth sure.

            The key question though is, what’s the purpose of calculating net worth?

            The more important number is total savings and investments for retirement. You can’t become financially independent on the 529 money you spent on your kid’s education (or the equity in your home, or the worth of your car, or a range of assets that add to net worth but don’t necessarily make you any closer to financial independence).

            #85388 Reply
            Marty

              Yes, we have several. We set them up for our grandkids. Two are in the process of using their money for school now, so be aware that your net worth will decrease as they withdraw.

              Don’t miss: Now that my debt is paid off – who knows of a good 529 account for my kiddo? Or something else better?

              #85389 Reply
              Grant

                Technically yes, but you don’t have to. I don’t count it since it’s earmarked for them. Any extra left over will go into a ROTH for them with the new rules that just passed.

                #85390 Reply
                Scott

                  I personally exclude kids savings and 529 from my net worth calc. I don’t plan to use those funds for my benefit. I would think you could throw them in the pot, but what’s the point if it won’t be spent for your benefit? That’s my opinion.

                  #85391 Reply
                  Nicholas

                    Yea especially if you list yourself as the beneficiary and can roll some of the funds to your Roth IRA to the 35k max. You can also take the ten percent penalty and cash them in by paying the taxes.

                    #85392 Reply
                    Kevin

                      Yes 529 is everyone can contribute and write off.. best thing you can do for your kids.. let says they get scholarships you can use that money however you want.. if I am wrong please correct me people.. here is learning and hope you guys don’t chew me apart.

                      #85393 Reply
                      Kelly

                        Technically, yes, but I never considered 529s or my home value as part of my net worth (from a retirement portfolio perspective).

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