News:

To return to the forum homepage, please click the banner at the top of your browser.

Main Menu

Advice on Paying for Private High School (529?)

Started by MisterS, February 16, 2019, 09:36:48 AM

Previous topic - Next topic

MisterS

So I have three kids.  The oldest is two years away from high school and the second oldest is fours years away.  We think they are going to go to a private high school.   I do have a large savings now that is kind of my emergency/big purchase fund...I might be making some additions to our home, and replacing an AC (Big Purchase) this spring.  So I don't mind having that big savings even though everyone says that I should have less cash.  Regardless, I was thinking of how can I prepare for High School costs for both of them.  So the question is, can I put away some of that money and use it in a 529 to pay for high school?  Perhaps a CD or Muni Bond and not pay taxes.  I don't want to put it into anything risky, but looking for a way to 1) Earmark the money 2) earn a savings of 3-5% 3) not pay taxes.  Could I do that with a 529 for them?  Or is there another way?  Maybe buy a MUNI BOnd that expires around then and not pay taxes?  Does this make sense?  Or do I just keep my money in a 2.5% savings and keep adding it to it. I should also add that I am maxing my 401K, and I do have percentage of money in Stocks/REITS.  Maybe 75% in cash 25 % in Stocks/Reits TAXABLE ACCOUNTS.  Not going to focus on college in this question...this is HIGH SCHOOL (short term ) for now.  Thank you.