Her: Age=32, Income=100K

Current AA: 67% Stocks + 33% Bonds

401k: $340K [His & Her match 4%] (continuing to max out both of our plans)

Roth IRA: $100 (planning backdoor)

Other IRAs: None

Cash: $110K (6+ months living expenses)

Mortgage: $235K at 3.625% interest 30Y fixed (currently paying $800 extra per month towards principal to pay it off in 15 years)

Tax: Married-Filing-Jointly, 28% Bracket

State: IL

Kids: 3 year old and newborn (planning 529s)

Right now I have nothing saved for the kids. I was doing some spreadsheet calculations for the cost of 4-year college.

**Current and Projected Tuition+Board etc:**

For an IL State University: In 2017: $120K. In 2032: $244K (assuming 4-6% tuition increase each year)

For an Ivy League University: In 2017: $260K. In 2032: $347K (assuming 4-6% tuition increase each year)

**Contributions needed to meet Projected costs:**

The 3 year old will go to college in 2032. Assuming a 6% year growth, I will need to save

$839 per month for an IL State University and

$1,193 per month for an Ivy League University

The newborn will go to college in 2036. Assuming a 6% year growth, I will need to save

$576 per month for an IL State University and

$819 per month for an Ivy League University

**Total contributions needed:**

So I will need to start saving this amount per month:

$1,415 per month or $16,981 annually for an IL State University and

$2,012 per month or $24,149 annually for an Ivy League University

The IL 529 plan seems decent with Vanguard stock/bond funds and ER of 0.17-0.19

**Plan:**

1. I plan to put in $11K each year via backdoor roth IRA using both of our accounts and the balance in a 529 plan. The thought is that if either of them gets a scholarship, I can withdraw the money from the 529 and still have some money in the Roth IRA. If neither of them get scholarship, then hopefully our 401ks should cover our retirement; but I can wait a decade before deciding if I should/want to do this.

2. I could put $11K each year in Roth and keep that separate from education. Now try to add all contributions to the 529 plans. This will make for a better cushion in retirement but keep a lot of money in the 529.

Are there other strategies that you've used that I've not considered?

Thanks for your time

Alto