[USER]

My husband (42) and I (38) just had a 1yr old. My husband save in his 401k (not maxed out), and no traditional/roth IRA.

We trying to decide should we put money into 529 for the kid college or open my husband a traditonal/Roth IRA (if this route which one?).

The money putting into traditional/roth IRA will still be considered for the kid college. But I feel this way by the time kid go to college is also time for my husband to be able to pull out his retirement.

But we would have more options to use the money instead of just tied to education.

Also it won’t affect the kid scholarship. What everyone thinks?

We can only do one or the other.

[Lisa]

This may be an unpopular opinion but my parents did not pay for my college and I did fine.

I went to a community college and paid monthly payments while in school.

I lived in a cheap apartment and worked full time and made it work without help or loans

[Marie]

I would open. 529 and a Roth IRA for you and your husband. The 529 grows tax free and you don’t pay taxes if used for education.

We put $100 a month and all cash gifts in it and it grew great.

I did open it with a $5k gift money when we started.

I would then but as much as you can in Roth for both of you up to 7k for 2025 in a sp500 fund.

Cut back on expenses to max these out

[Christina]

Take care of your own retirement first. There are other ways to pay for college if/when your child goes to college but there are no other ways to fund your retirement other than saving/investing now, if you ever want to retire.

[Jule]

Always take care of your own finances (including retirement) first. Max your 401K, IRA, and if you have access to an HSA, that too.

The kid can earn scholarships for college, but you can’t get loans, scholarships or loans for retirement.

Put on your oxygen mask first so that in old age you don’t become a burden for your child.

[Phani]

I went through the same scenario.. now my daughter is 11 yr old want to pursue medicine and her education is paid for 70%

[Author]

Posts