Hi,
We have a HS senior and junior this year, so in two years will have two in college. We live in a high-cost state (CA) but have a relatively high income ($300K) with lots of retirement savings and home equity. We made the decision to not specifically save money in a college fund, since our 401k plans were so good, thinking we would just pay for college out of our earnings and cut back on the retirement savings for the 6 years that we have kids in college. Question, is this the best way to do this, or should we start now, one year early, and put money into a 529 fund? I believe the 529 only provides tax advantages on the earnings, of which there wouldn't be much, so is this worth it over just going with the original plan of paying out of our earnings? Any other ideas? Thank you for any advice!
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