ESA with low income

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Joined: Fri Jan 13, 2017 2:40 am

ESA with low income

Post by TheHouse7 » Wed Nov 22, 2017 1:28 pm

I just got done convincing my DW to max tax advantaged accounts for 2018.

Our income will be 80k


Does an ESA or 529 make sense for our new born (due in Feb)? I think we can handle 2k for an ESA, but don't know if it is resonable at our income level.

I don't know that much about either plan. :|
"PSX will always go up 20%, why invest in anything else?!" -Father-in-law early retired.

Posts: 67
Joined: Sun Nov 16, 2014 5:17 pm

Re: ESA with low income

Post by Wings5 » Tue Jan 09, 2018 8:36 pm

That's not low income! You've been mesmerized by the net worth threads around here.

We have an ESA through Schwab for each of our children. They have very low cost index funds available. It's a great use of funds even if you don't put piles and piles of money into it. I try to be a simpleton, so I'd put it into the order of investing found on the Wiki right after contributing to an IRA.

We've recently decided to take a percentage of the money we were putting towards college savings and put it towards educational expenses here and now. We're looking at language immersion for our kids and thinking it may provide much better long-term life value than a few thousand bucks to pay for books, but that's just us. 8-)

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