As much as your strategy sounds good, it doesn't work. First off, it requires an average annual return of 12.44%. Second off, there's a five year holding period for a Roth to be tax free. Third off, you have to be 59.5 to make a qualified withdrawal from a Roth. While IRA accounts allow for penalty free withdrawals for education, you still must pay the taxes, which could cause you to lose aid. Lastly, you can only do $7,500 per year, and that's if you're over 50, and there's an income phaseout that prevents you from making the contribution, which me and the Mrs. are above.Invest $20k (partly in a Roth) for 8 years and have $250k+ when they go to college. I'm just sayin.
20 years ago I found myself paying about $5k for 3 kids each per year, and decided that was the wrong approach.
You get much more for your money paying for instruction vs travel teams (until you get to the recruiting year)
If you booked already...
8% compounded (I think the Dow averages abt 8, not including dividends)
That's only partially correct. Only the contributions can be withdrawn tax-free prior to age 59.5, even for college.
Absolutely! This summer is much more expensive than last year. Everything is at least 15-20% higher than in 21 or 22.
