Previously we decided to stop contributing monthly to DC1’s 529 and instead invest a lump sum equal to what we would have invested each month in the time before zie graduated high school. Once we knew more about hir college plans, we could adjust.
DC2’s 529 we kept investing in monthly as before. I guess we’d decided not to because we were expecting to pay for DH’s relative’s son’s college. But he didn’t go to college in the end. And I was completely wrong about the stock market– I always am! The stock market is unpredictable. It’s irrational! Especially when we have such huge income inequality. (We will be paying for 2 years of DH’s relative’s daughter’s college though, tuition and fees but not living expenses– she’s recovering from being sick taking this semester off and plans to finish her remaining two community college courses in the fall, then transfer to a state school as an English major. Hopefully that will actually happen.)
Right now we have too much in cash savings. Even with the 12K gone for our annual IRA Backdoor Roth conversion.
We could also use a little bit more monthly cash flow to help me with accounting given DH’s continued unemployment. Another $750/month wouldn’t go amiss, especially since my health insurance costs have gone up $300/month putting DH on the plan and switching from the the Traditional 403(b) to Roth 403(b) (now that Trump is gone, I’m more willing to pay taxes now) is taking more money out of my take-home pay.
So we could do a lump sum in DC2’s 529 equivalent to what we would put in between now and when DC1 graduates from high school (or some other target date) and then stop contributing until we know what DC1’s college plans are going to cost. DC1 is currently a second-semester sophomore so two full years would be $750*12*2 = $18,000 and then $750 a month additional for however many months more we want to add. If we do that, our savings account will drop to a more reasonable level– a standard academic emergency fund (3 months summer salary + 1 month for emergencies) and a little bit more.
Now I just need to get around to actually doing this. (Which is why this post has sat in drafts for a while.)
If DH suddenly gets employed before I get around to doing this, I might not? But I don’t know if that is going to happen or not. After the four interviews last week I’m not sure that there’s anything obvious to set in motion unless we are willing to move.