NYS 529 Direct Plan - Now the Cheapest!

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NYS 529 Direct Plan - Now the Cheapest!

Postby Grt2bOutdoors » Fri May 11, 2012 10:33 am

The NYS 529 Direct sold plan is now the nations cheapest savings plan - new fees of 0.17% down from 0.25% as of Monday. Let's see UTAH top this.
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Re: NYS 529 Direct Plan - Now the Cheapest!

Postby BYUvol » Fri May 11, 2012 1:15 pm

GRT2BOUTDOORS wrote:The NYS 529 Direct sold plan is now the nations cheapest savings plan - new fees of 0.17% down from 0.25% as of Monday. Let's see UTAH top this.


Is there a fund minimum in NY? For Utah, it is $0, which is a benefit to those just starting out.
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Re: NYS 529 Direct Plan - Now the Cheapest!

Postby Tom_T » Fri May 11, 2012 1:18 pm

BYUvol wrote:
GRT2BOUTDOORS wrote:The NYS 529 Direct sold plan is now the nations cheapest savings plan - new fees of 0.17% down from 0.25% as of Monday. Let's see UTAH top this.


Is there a fund minimum in NY? For Utah, it is $0, which is a benefit to those just starting out.

The minimum to open an account is $25.
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Re: NYS 529 Direct Plan - Now the Cheapest!

Postby kdmusic » Fri May 11, 2012 1:28 pm

25 dollar minimum for NY State.

I have another question. My daughter is 4, and her college money is with Illinois 529 (.21). Is it really worth it to move the money to NY plan?

kd
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Re: NYS 529 Direct Plan - Now the Cheapest!

Postby BYUvol » Fri May 11, 2012 1:35 pm

We're expecting our first in November, so I'm exploring options. As Utah residents, we can get a $178 state income tax savings each year we contribute $3,560, and our maintenance fee is waived. I expect that probably rules out the economic advantages of the NY plan, since the minimum deposit is negligible in both cases.

Does anyone know if they can view the NY plan from within their Vanguard account like the Nevada one? If so, that may be a convenience feature worth forgoing the state tax credit on.
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Re: NYS 529 Direct Plan - Now the Cheapest!

Postby Tom_T » Fri May 11, 2012 2:14 pm

BYUvol wrote:We're expecting our first in November, so I'm exploring options. As Utah residents, we can get a $178 state income tax savings each year we contribute $3,560, and our maintenance fee is waived. I expect that probably rules out the economic advantages of the NY plan, since the minimum deposit is negligible in both cases.

Does anyone know if they can view the NY plan from within their Vanguard account like the Nevada one? If so, that may be a convenience feature worth forgoing the state tax credit on.

You can't. The Vanguard 529 plan that you get directly on their site is actually a Nevada trust. Any other state, you have to go to their Web site to see the account. I have the NY 529 plan, and I definitely can't see it when I'm logged into my Vanguard account.
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Re: NYS 529 Direct Plan - Now the Cheapest!

Postby letsgobobby » Fri May 11, 2012 6:02 pm

kdmusic wrote:25 dollar minimum for NY State.

I have another question. My daughter is 4, and her college money is with Illinois 529 (.21). Is it really worth it to move the money to NY plan?

kd


is the 0.17% the 529 plan fee only? What about the fees of underlying funds? I am too lazy to look.
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Re: NYS 529 Direct Plan - Now the Cheapest!

Postby 555 » Fri May 11, 2012 7:43 pm

GRT2BOUTDOORS wrote:`The NYS 529 Direct sold plan is now the nations cheapest savings plan - new fees of 0.17% down from 0.25% as of Monday. Let's see UTAH top this.'

Are you serious? Why would you believe this? Where did this claim come from?
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Re: NYS 529 Direct Plan - Now the Cheapest!

Postby 555 » Fri May 11, 2012 7:46 pm

letsgobobby wrote:`Is the 0.17% the 529 plan fee only? What about the fees of underlying funds? I am too lazy to look.'

You mean it's a wrap fee on top of the ERs? That's even worse.
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Re: NYS 529 Direct Plan - Now the Cheapest!

Postby Tom_T » Fri May 11, 2012 8:15 pm

555 wrote:
letsgobobby wrote:`Is the 0.17% the 529 plan fee only? What about the fees of underlying funds? I am too lazy to look.'

You mean it's a wrap fee on top of the ERs? That's even worse.

That is not the case. There is an underlying fund expense, and there is a program management fee. The latter was negotiated between NY State and Vanguard. There is no state fee. The total fee for any fund is 0.17%. The site spells out both fees for every Vanguard 529 fund.

https://a248.e.akamai.net/f/248/21630/7 ... iption.pdf
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Re: NYS 529 Direct Plan - Now the Cheapest!

Postby 555 » Fri May 11, 2012 10:26 pm

Whatever. OP is wrong.
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Re: NYS 529 Direct Plan - Now the Cheapest!

Postby Tom_T » Fri May 11, 2012 10:50 pm

He was off, but it is true that the NY plan fees were just lowered. Of all the 529 plans in the country, the NY plan is in the top ten when measured by overall expense ratio, and ranks even higher depending on what investment you choose. This is based on the savingforcollege.com site.

The NY plan is not the only good choice, but it's a good choice.
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Re: NYS 529 Direct Plan - Now the Cheapest!

Postby larrydmsn » Fri May 11, 2012 11:23 pm

The OP is correct. 0.17% is the TOTAL asset-based fee, including the underlying fund expense and program management fee. See https://a248.e.akamai.net/f/248/21630/7d/im.uprinv.com/rc/sr2/ny/programDescription.pdf
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Re: NYS 529 Direct Plan - Now the Cheapest!

Postby 555 » Fri May 11, 2012 11:51 pm

Tom_T wrote:He was off, but it is true that the NY plan fees were just lowered. Of all the 529 plans in the country, the NY plan is in the top ten when measured by overall expense ratio, and ranks even higher depending on what investment you choose. This is based on the savingforcollege.com site.

The NY plan is not the only good choice, but it's a good choice.


Okay. I certainly wouldn't argue with any of that.
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Re: NYS 529 Direct Plan - Now the Cheapest!

Postby sanfran2012 » Fri May 11, 2012 11:56 pm

here is a article regarding this topic

http://blogs.democratandchronicle.com/v ... r-college/
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