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Posted

Got my first college student starting in the fall.  I have the cash side of the equation with different securities, CDs, and investments maturing on a schedule to withdraw as we go so this isn’t a saving for college question but how to best pay for it.

I want to know thoughts on how to go about maximizing the transaction between taking loans, paying with credit cards, etc.  I remember when I was a student my dad had a GMAC rewards card and with 4 boys in college at one time he earned enough to get a new truck.

I have one starting in fall 2025 and the next one in fall 2027.

How do I maximize the opportunity for things like airline miles, cash back, new cars or just floating the cash with a low interest loan and bank the spread on a higher interest CD?

 

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Posted

Are you paying any of the school with education savings accounts like a 529?  If so, you'll get a 1099-Q which you'll want to match-up with the 1098-T tuition statement from the school.  Otherwise, you might risk having to pay taxes on the growth in the 529.  I try to minimize audit risks, so I distributed the 529 payments to the kids and they paid tuition.  All of that ran through their tax returns.  If not, disregard.

 

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Posted

No. I put some in a Roth IRA but don’t think I will need to tap that. Most is coming from taxable investments like EESP or retail brokerage accounts. 

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Posted (edited)
2 hours ago, UTPhil2006 said:

There's a guy on here buying a 2/1 condo for his kid. Not the worst idea I've ever heard. And then sell or keep renting after 4-5 years 

If both kids go to the same college I might do that.

I've also thought of that when I retire.  Rent my huge house to my kids and buy a new one for me to downsize.  

Right now I have a 1% unlimited cashback card I plan to use but there has to be a better payout.

Different Capitol one cards have things like 75,000 bonus miles after spending $4000 in the first 3 months, 1.5% on all purchases and other offers.

Edited by TexasEd

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