Hi dads. I want to start saving for my kids education. They are 2 years old now (twins). I’m not too sure about 529 cause I may leave the country soon. What other options do I have?

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It is a noble goal, but make sure you’re maxing out every tax advantaged retirement account first. IRA, Roth, for a 1K, Roth 401(k), HSA, after tax plan for Mega backdoor IRA. You can always pause those later after they are built up to pay cash for education or borrow You cannot borrow for retirement. Also, who knows? Your kids may get a scholarship.

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Ha. Voice typing. *401k

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Invest in similar tax free plans in your home country?

BCG1 is right. 529s are for suckers and the lazy. You will get much better returns and accessibility with other saving vehicles.

@BCG1 - what is Roth for a 1k? I’m trying to look that up but not finding anything. Newbie here 🤔.

Build your home equity. When it comes time to pay tuition, take out a HELOC or do a cash out refinance.

BCG1 - what’s the point in maxing out HSA? Can I use it for anything else other than qualified medical expenses?

No, but thats the one thing that’s pretty much guaranteed everyone will need at some point so it’s a safe bet. HSA is completely tax free for qualified expenses which is rare. Deductible when you contribute and no tax on principal or earnings when you withdraw it

C1 - you pay tax on earnings and principal when you withdraw after 59.5 years. Before that there is tax and penalty.

OP - HSA has no taxes ever if used for medical expense (for you, spouse, or dependents). Taxed as ordinary income only if withdrawn (for any purpose) after age 65. Best case: tax free medical. Worst case: it’s basically a 401k.

Mostly I think about it as a 401k with a higher withdrawal age

OP, what you said is true for 401k or IRA (I forget which off the top of my head) but not accurate for HSA. There is no early withdrawal penalty for HSA because it’s a health account, not a retirement account.

Before 65, 20% penalty if you withdraw for non-qualified expenses. After 65, no penalty but treated like ordinary income.

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