I had an idea, probably not a bright one about front loading college savings for my little ones. I have one under 5 and another under a year. I don't have the cash now but will be debt free in about a year and will have an improved cash flow.

I know there are tax implications and I need to do the scenario math, but my thought is this. If I put 50k away for the littlest one by age 4, if there is a 10% average return, that grows to 200k by 18 without any more investment.

I understand there are 529 annual limits but could put that money in a different investment vehicle and just roll it over on an annual basis.

Yes I understand the market could crash. I started professional school in fall 2009 and saw first hand people struggling because their college savings got cut in half. But those rebounded fairly quickly and most just found a way to cash flow the first couple years.

Probably a dumb idea but if I don't post a dumb idea on TexAgs once a week I have withdrawals from lack of mockery.

10% annual return seems too aggressive of an assumption and your investment strategy at ages 16-18 likely can't be that aggressive anyways.

Don't wait until you have a chunk of cash to fund them with, open the accounts now and seed them with something. $1k, $200, whatever. Then if a windfall comes your way there will be one less hurdle to opening them, all you have to do is transfer the money

Why is this a bad idea? The more money you have invested for longer periods of time, the farther ahead you are.

I would be asking if 529's are the best account or if something else provides more flexibility that will position you better for financial aid opportunities.

I think it's a great idea if you are able to do it. Many people aren't able to or have other financial goals they are also trying to achieve at the same time. I've kinda done this with my 2 toddlers and am hoping to feel good about the decision in another 16 years.