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Financial Freedom => Financial Advice From The Community / Reader Profiles => Topic started by: MisterS on February 16, 2019, 09:36:48 AM

Title: Advice on Paying for Private High School (529?)
Post by: MisterS on February 16, 2019, 09:36:48 AM
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.