smurflady wrote:Any recommendations on which 529 plan is best when there is no state deduction? NY seems to have the lowest fees but I don't like the big changes in the aged based AA every 5 years. Should I just go with a state that has an AA that I like and reasonable fees (under 0.3%)?
mickcris wrote:smurflady wrote:Any recommendations on which 529 plan is best when there is no state deduction? NY seems to have the lowest fees but I don't like the big changes in the aged based AA every 5 years. Should I just go with a state that has an AA that I like and reasonable fees (under 0.3%)?
You can set up your AA however you want in the NY plan by using the individual portfolios. Then adjust it yourself when you feel it is appropriate:
https://uii.nysaves.s.upromise.com/cont ... tions.html
You can also do this in the Utah plan that has a very low ER also:
http://www.uesp.org/Investment-Info/Cus ... tions.aspx
kenyan wrote:Most of the excellent plans have been noted above: NY, NV, UT (using Vanguard funds); CA, WI (TIAA-CREF).
The large AA changes in the age-based NY plan turned me off as well initially, but you can just set your AA manually. If you don't want to deal with that, don't go for the NY plan.
NV has a larger initial investment requirement than the other plans, $3k. One very minor benefit would be that it counts toward your Vanguard Flagship status, if that matters to you.
The TIAA-CREF plans have a Stable Value option that has a better yield than cash accounts.
I am investing in both the NY and CA plans for different children.
Gustie13 wrote:Does anyone do different 529s in different states for the same beneficiary?
Here is why I ask: My friends live in MN and can't get any state tax deduction so they could pick whichever state plan they prefer for their newborn but they have grandparents in states that do offer a tax deduction, so would it make sense for the grandparents to start a separate 529 for the same newborn?
robocop wrote:Be careful if you want to change account owners- the NY plan does NOT allow ownership changes to the account.
That made it a dealbreaker for me (an aunt), who is opening the account but may want to change ownership to the parents in the future depending on our situation.
I decided to stick with WI, as it has very low expenses if you have a 2 fund portfolio (total US stock and bond index funds)- stock is .15 and bond is .21. It permits change in ownership, which is also convenient.
cflannagan wrote:I'm surprised nobody mentioned Ohio 529s? They were frequently named few years ago. Have they since fallen out of favorites list? We use Ohio (collegeadvantage.com)
They use Vanguard age-based funds (composition is similar to target retirement funds).
ursineogre wrote:I get the state tax benefits, but what is the end result in living in one state and using a 529 from another state? If I live in VA and have a 529 in NY, does that mean my kids have to go to college in NY? What if they want to go to college in Alaska?
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