[USER]

I have four kids ages 9,6,4 and 1 year.
I make a decent amount per year but just now about to start their savings.

Should I go straight for the 529 and not do the Roth? Is 6k per kid each year too much?

I just want to be sure that I’m making the correct decision for their financial futures.

[Sylvia]

My cfp told me 800/month for public university and i started when he was age 2

[Raghu]

529 Plan is good.
If you can only allocate 24K per annum then allocate more funds on elder kids 529 plan when compared to younger kids.

Younger kids plan will have time to catch up.

And also, Unutilized funds from elder kids 529 plan can be used for younger kids.

[Ben]

As others have said, you should give more to the oldest and less to the youngest. The 1 year old has an 8 year head start.

[Katelynn]

What about your retirement?
I would do closer to 4K in the 9 and 6 year old accounts , 3 k in the 4 and 1 year old 529.

1 k for 4 and 6 year old in a 529 and $500 a year to the 4 and 1 year old.

The younger kids will have more time for the money to grow. The older kids will need the money sooner. Once your oldest gets closer to college I’d put more into the younger kids accounts.

The older kids will have a better FASFA package due to siblings. As you make more you can slowly increase the younger kids.

I would have separate accounts for each child.

I have two kids and each kid has their own 529 and UTMA to keep things simple.

Everything auto deposits when I get paid to stay on track.

Look up the new rules regarding 529 roll over to Roth accounts.

[Tyler]

You cannot do Roth for them unless you can prove that they made whatever contributions to their Roth accounts in actual income.
I would do the 529.

If they do not end up using them, and the account has been open for at least 15 years, they’d be able to convert that money into Roth money. (Max of 35k)

[Robert]

I would look into whole life insurance with a focus on maximizing cash value for them. It’s cheap when they are young.

Use a mutual company like mass mutual.

Start them out young with infinite banking!

Life insurance predates the tax code, so there are certain advantages

[Author]

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