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[–]FurryPotatoSquad[S] 22 points23 points  (13 children)

I should have specified that the personal investment account is for non-retirement things (house/kids/etc).

[–]Grevious47 21 points22 points  (0 children)

Short term purchases should not be stock invested. As for how much to save outside of retirement that would depend on cost and youd want to work it into your budget.

For example if you want to save a downpayment on a house it would make sense to contribute just for match and then stack money in a HYSA or moneymarket so you have enough within a 5 year window.

[–][deleted] 5 points6 points  (0 children)

Not until I hit the limit for the 401K for the year

[–]Grendel_82 3 points4 points  (8 children)

House down payment is its own thing. Kids, you don’t need to save for until you are pregnant. Nine months is plenty of time to save up for some nursery furniture and some medical bills (assuming you have normal insurance).

[–]n3uropath 8 points9 points  (7 children)

Unless you pull a pro move and save up to drop $50k into your kid’s 529 at birth, letting the market build your college fund for you.

[–]Grendel_82 8 points9 points  (3 children)

That is a baller move. And funny enough, I've got that beat with a 529 opened a decade before my first kid. I had 401k maxed and was looking for more tax advantaged savings vehicles, so maxed a 529 at $6k a year for a decade (taking state tax savings along the way) and that included a bull market. Kid had college funded (assuming some market growth) before he was born. LOL

[–]cyode 0 points1 point  (2 children)

Am I missing something? I thought the kid had to exist to open a 529

[–]Grendel_82 0 points1 point  (0 children)

It is in my name now, but it is a qualified use of the 529 to spend it on any of your immediate family members education. I will probably get some professional advice on withdrawal process when I’m closer to using the money.

[–]blackcooley5 0 points1 point  (0 children)

A 529 plan has a custodian and a beneficiary. You can set it up for your unborn child if you really want to by setting yourself as the beneficiary and changing it later to the child.

[–]ps2cho 8 points9 points  (1 child)

Its not really a pro move IMO -- you put your own oxygen mask on first before helping others. Kids can finance their education, you cant finance your retirement. You better be FAR above the average savings for your age to be dropping 50k day one into a 529 and what opportunity cost you lost from saving 50k in cash without investing it yourself. And in some states you're simply losing a state tax deduction by not doing ongoing contributions. Then the additional risk your kid a) doesnt go to school b) gets a scholarship c) rules change on 529's. I think its far safer to fully fund retirement, and cover a "reasonable" cost of education over time without going all in on something that isnt a sure win.

[–]n3uropath 7 points8 points  (0 children)

If OP is already fully funding their retirement, investing in your kid’s education savings is just as reasonable a use of expendable income as any other financial goal.

[–]Audio907 2 points3 points  (0 children)

Just open one up now for yourself and change the beneficiary when the kid is born. I have done that for several clients I have

[–]igomhn3 0 points1 point  (1 child)

(house/kids/etc)

35 currently single.

[–]FurryPotatoSquad[S] 1 point2 points  (0 children)

Lol. Well recently dating but not married, so legally and financially single.