California 529 plan

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Hector
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California 529 plan

Post by Hector »

From whatever I read you do not get pre tax advantages of 529 in California.

I have often read here that Ohio 529 plan is recommended a lot because of available vanguard funds. It offers Vanguard 500 Index Option at 0.19%, international at 0.27% and Vanguard Income Portfolio at 27%. I think a lot of bogleheads would go for these funds along with age bases funds

California 529 offers Large Cap Index (S&P 500) at 0.18%, Index U.S. Equity (Russell 3000) at 0.18% and Bond Index at 0.23%

Apart from not having stand alone international (to include international or not is another discussion), what are the dis-advantages for Californians to go for California 529?

Do you know other state 529 plans with less expensive index options?

A bigger question: people living in those 6 or so states where there is not tax deduction, do you have 529?
If so, do you aggressively contribute to 529?

Ibond\ebond are options for college funding. What are the other options for tax advantages relates to college funding?

I think I can open multiple(one 529 in state A, another in state B...) 529 plans, correct?
bmelikia
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Re: California 529 plan

Post by bmelikia »

I think that Nevada is another one. . .
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kenyan
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Re: California 529 plan

Post by kenyan »

I have two plans, California and New York. Neither is perfect, but each is just fine. NY is the cheapest one out there currently, but several others are close and may suit the needs of an individual investor better. I have been contemplating switching my CA plan for Utah, but it's really just splitting hairs.

I have 529 plans (CA resident), but do not contribute aggressively to them, because we have tax-advantaged retirement accounts that are not maxed out each year. If/when we reach that level, I will contribute more to the 529 plans.

Check out the wiki on 529 plans and 529 plan cost comparisons to investigate some of the other inexpensive plans.
Retirement investing is a marathon.
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SkierMom
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Re: California 529 plan

Post by SkierMom »

Fellow Californian here.

We have the Vanguard Nevada 529 accounts for our two kids. We chose the Nevada plan ten years ago because we had our Roth accounts with Vanguard.

At the time of our eldest daughters' birth (10 years agao) the California plan had limited fund choices and higher fees. The plan sponsor changed last year to TIAA-CREF and I understand fees have decreased.

Since there is no tax-advantage for investing in the CA State Plan, shop around for lower fees, compatable investment house, fund selection you want.
overvue
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Re: California 529 plan

Post by overvue »

The CA plan is pretty decent. It is a tad more expensive than Utah plan. If you already have a CA plan, it would be splitting hairs to move to a Utah plan. But if you are starting new, there are cheaper plans like Utah, NY, Nevada. Fees and underlying funds are important to look into.

But really there is no major disadvantage for a Californian to invest in a CA 529 plan. None that comes to mind!
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Hector
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Re: California 529 plan

Post by Hector »

overvue wrote:The CA plan is pretty decent. It is a tad more expensive than Utah plan. If you already have a CA plan, it would be splitting hairs to move to a Utah plan. But if you are starting new, there are cheaper plans like Utah, NY, Nevada. Fees and underlying funds are important to look into.

But really there is no major disadvantage for a Californian to invest in a CA 529 plan. None that comes to mind!
I dont have a plan and looking for one.

Is it possible to have multiple 529 plans per child?
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kenyan
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Re: California 529 plan

Post by kenyan »

Yes, you may have multiple plans per child.
Retirement investing is a marathon.
overvue
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Re: California 529 plan

Post by overvue »

Yes, as "kenyan" wrote: you can have multiple plans. I am presuming the multiple plans would be for the child in different state 529 plans. You can do that.
FB01
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Re: California 529 plan

Post by FB01 »

I am also a CA resident and contribute to Ohio plan only. Nothing else
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