Help with Choosing Funds for Utah/NY 529 Plans

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bugaloo
Posts: 62
Joined: Fri Dec 18, 2015 4:34 pm

Help with Choosing Funds for Utah/NY 529 Plans

Post by bugaloo » Mon Jun 26, 2017 9:19 pm

I posted earlier this month about Utah vs NY 529 plans and the fact that I can't decide.

I spoke to reps at both today and the NY one seems more straightforward w/ EP ratio of .16% no matter which funds I pick or how I allocate. Our baby is not even a year, so I want to pick the Stock Portfolios and stay 100% in stocks (there are 6 different options which I am not sure how to choose like, Vanguard Institutional Total Stock Market Index Fund/Vanguard Total International Stock Index Fund; Vanguard Developed Markets Index Fund; Vanguard Growth Index Fund; Vanguard Midcap Index Fund; Vanguard Small Cap Index Fund; Vanguard Value Index Fund).

With the Utah 529, it has been recommended to me by a friend in wealth managament to choose the customized static option of the DFA Global Equity Portfolio (which has management fee of .3%, but I think from what I understand, the DFA funds usually to 1% better than the other options??)

Would appreciate any advice/insight on how to choose which funds to go with in either of these plans. I am leaning towards the NY plan overall even though Utah is so well-revered.

mcraepat9
Posts: 795
Joined: Thu Jul 16, 2015 11:46 am

Re: Help with Choosing Funds for Utah/NY 529 Plans

Post by mcraepat9 » Mon Jun 26, 2017 9:21 pm

bugaloo wrote:I posted earlier this month about Utah vs NY 529 plans and the fact that I can't decide.

I spoke to reps at both today and the NY one seems more straightforward w/ EP ratio of .16% no matter which funds I pick or how I allocate. Our baby is not even a year, so I want to pick the Stock Portfolios and stay 100% in stocks (there are 6 different options which I am not sure how to choose like, Vanguard Institutional Total Stock Market Index Fund/Vanguard Total International Stock Index Fund; Vanguard Developed Markets Index Fund; Vanguard Growth Index Fund; Vanguard Midcap Index Fund; Vanguard Small Cap Index Fund; Vanguard Value Index Fund).

With the Utah 529, it has been recommended to me by a friend in wealth managament to choose the customized static option of the DFA Global Equity Portfolio (which has management fee of .3%, but I think from what I understand, the DFA funds usually to 1% better than the other options??)

Would appreciate any advice/insight on how to choose which funds to go with in either of these plans. I am leaning towards the NY plan overall even though Utah is so well-revered.
If you are a value tilter or DFA fan, go with UT. If you are a straight market cap person with no desire to tilt to value, go with NY. It is that simple.
Amateur investors are not cool-headed logicians.

Grt2bOutdoors
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Location: New York

Re: Help with Choosing Funds for Utah/NY 529 Plans

Post by Grt2bOutdoors » Mon Jun 26, 2017 9:49 pm

bugaloo wrote:I posted earlier this month about Utah vs NY 529 plans and the fact that I can't decide.


With the Utah 529, it has been recommended to me by a friend in wealth managament to choose the customized static option of the DFA Global Equity Portfolio (which has management fee of .3%, but I think from what I understand, the DFA funds usually to 1% better than the other options??)
Don't be so sure about that. If you go on the website, www.uesp.org under the performance tab, you'll see that the DFA Global Equity fund has kept pace with a number of plain ole Vanguard Index funds, but outperform it? That's not what the record shows, there are some other funds which have outperformed the DFA fund, however, in order to be fair, you'd need to compare apples with apples.
Would appreciate any advice/insight on how to choose which funds to go with in either of these plans. I am leaning towards the NY plan overall even though Utah is so well-revered.
In the past, the NYS plan was not so well structured, they originally started out with TIAA-CREF and those options did not perform well, then they got religion and found Vanguard. After that, performance began to improve, then NYS cut the fees,
and they kept on cutting them, making the plan a very good option. Utah, has consistently managed the plan in a thoughtful manner, thoughtful as in "looking out for its participants"
from day one. That is why Utah is revered. I hold both plans, either way you won't lose. If you don't know which way to go, pick an age-based allocation plan with an aggressive to moderate investment track and start saving.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

bugaloo
Posts: 62
Joined: Fri Dec 18, 2015 4:34 pm

Re: Help with Choosing Funds for Utah/NY 529 Plans

Post by bugaloo » Mon Jun 26, 2017 9:55 pm

mcraepat9 wrote:
bugaloo wrote:I posted earlier this month about Utah vs NY 529 plans and the fact that I can't decide.

I spoke to reps at both today and the NY one seems more straightforward w/ EP ratio of .16% no matter which funds I pick or how I allocate. Our baby is not even a year, so I want to pick the Stock Portfolios and stay 100% in stocks (there are 6 different options which I am not sure how to choose like, Vanguard Institutional Total Stock Market Index Fund/Vanguard Total International Stock Index Fund; Vanguard Developed Markets Index Fund; Vanguard Growth Index Fund; Vanguard Midcap Index Fund; Vanguard Small Cap Index Fund; Vanguard Value Index Fund).

With the Utah 529, it has been recommended to me by a friend in wealth managament to choose the customized static option of the DFA Global Equity Portfolio (which has management fee of .3%, but I think from what I understand, the DFA funds usually to 1% better than the other options??)

Would appreciate any advice/insight on how to choose which funds to go with in either of these plans. I am leaning towards the NY plan overall even though Utah is so well-revered.
If you are a value tilter or DFA fan, go with UT. If you are a straight market cap person with no desire to tilt to value, go with NY. It is that simple.
I actually don't know what it means to tilt to value....

bugaloo
Posts: 62
Joined: Fri Dec 18, 2015 4:34 pm

Re: Help with Choosing Funds for Utah/NY 529 Plans

Post by bugaloo » Mon Jun 26, 2017 10:00 pm

mcraepat9 wrote:
bugaloo wrote:I posted earlier this month about Utah vs NY 529 plans and the fact that I can't decide.

I spoke to reps at both today and the NY one seems more straightforward w/ EP ratio of .16% no matter which funds I pick or how I allocate. Our baby is not even a year, so I want to pick the Stock Portfolios and stay 100% in stocks (there are 6 different options which I am not sure how to choose like, Vanguard Institutional Total Stock Market Index Fund/Vanguard Total International Stock Index Fund; Vanguard Developed Markets Index Fund; Vanguard Growth Index Fund; Vanguard Midcap Index Fund; Vanguard Small Cap Index Fund; Vanguard Value Index Fund).

With the Utah 529, it has been recommended to me by a friend in wealth managament to choose the customized static option of the DFA Global Equity Portfolio (which has management fee of .3%, but I think from what I understand, the DFA funds usually to 1% better than the other options??)

Would appreciate any advice/insight on how to choose which funds to go with in either of these plans. I am leaning towards the NY plan overall even though Utah is so well-revered.
If you are a value tilter or DFA fan, go with UT. If you are a straight market cap person with no desire to tilt to value, go with NY. It is that simple.
And I don't know exactly what DFA funds are except that everyone seems to love them

mcraepat9
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Joined: Thu Jul 16, 2015 11:46 am

Re: Help with Choosing Funds for Utah/NY 529 Plans

Post by mcraepat9 » Mon Jun 26, 2017 10:44 pm

bugaloo wrote:
mcraepat9 wrote:
bugaloo wrote:I posted earlier this month about Utah vs NY 529 plans and the fact that I can't decide.

I spoke to reps at both today and the NY one seems more straightforward w/ EP ratio of .16% no matter which funds I pick or how I allocate. Our baby is not even a year, so I want to pick the Stock Portfolios and stay 100% in stocks (there are 6 different options which I am not sure how to choose like, Vanguard Institutional Total Stock Market Index Fund/Vanguard Total International Stock Index Fund; Vanguard Developed Markets Index Fund; Vanguard Growth Index Fund; Vanguard Midcap Index Fund; Vanguard Small Cap Index Fund; Vanguard Value Index Fund).

With the Utah 529, it has been recommended to me by a friend in wealth managament to choose the customized static option of the DFA Global Equity Portfolio (which has management fee of .3%, but I think from what I understand, the DFA funds usually to 1% better than the other options??)

Would appreciate any advice/insight on how to choose which funds to go with in either of these plans. I am leaning towards the NY plan overall even though Utah is so well-revered.
If you are a value tilter or DFA fan, go with UT. If you are a straight market cap person with no desire to tilt to value, go with NY. It is that simple.
And I don't know exactly what DFA funds are except that everyone seems to love them
Then there is no reason for you to mess with UT - go with NY.
Amateur investors are not cool-headed logicians.

Grt2bOutdoors
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Location: New York

Re: Help with Choosing Funds for Utah/NY 529 Plans

Post by Grt2bOutdoors » Tue Jun 27, 2017 6:27 am

DFA is like a cult....of specialized value investors. Like Bogleheads, we have disciples of Graham and DFA'ers.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

bugaloo
Posts: 62
Joined: Fri Dec 18, 2015 4:34 pm

Re: Help with Choosing Funds for Utah/NY 529 Plans

Post by bugaloo » Tue Jun 27, 2017 10:10 am

Grt2bOutdoors wrote:DFA is like a cult....of specialized value investors. Like Bogleheads, we have disciples of Graham and DFA'ers.

Guess I have more to learn then! This is why I was leaning towards NY anyways. However, I probably should learn a bit more about DFA since our IL 529 plan is also going to start offering these funds as an option starting next month.

Any advice on how to allocate my funds in the NY plan? I had listed the different Vanguard fund options in my OP. Kid is still a baby, so I have room to be aggressive with my allocations.

neveragain
Posts: 196
Joined: Mon May 29, 2017 3:01 pm

Re: Help with Choosing Funds for Utah/NY 529 Plans

Post by neveragain » Thu Jun 29, 2017 7:31 pm

bugaloo wrote:
Grt2bOutdoors wrote:DFA is like a cult....of specialized value investors. Like Bogleheads, we have disciples of Graham and DFA'ers.

Guess I have more to learn then! This is why I was leaning towards NY anyways. However, I probably should learn a bit more about DFA since our IL 529 plan is also going to start offering these funds as an option starting next month.

Any advice on how to allocate my funds in the NY plan? I had listed the different Vanguard fund options in my OP. Kid is still a baby, so I have room to be aggressive with my allocations.
I was looking to see if anyone answered your question, because I'd like to know also. Do they have age-based portfolio that automatically adjusts when the child reaches a certain age?

Grt2bOutdoors
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Location: New York

Re: Help with Choosing Funds for Utah/NY 529 Plans

Post by Grt2bOutdoors » Thu Jun 29, 2017 7:39 pm

neveragain wrote:
bugaloo wrote:
Grt2bOutdoors wrote:DFA is like a cult....of specialized value investors. Like Bogleheads, we have disciples of Graham and DFA'ers.

Guess I have more to learn then! This is why I was leaning towards NY anyways. However, I probably should learn a bit more about DFA since our IL 529 plan is also going to start offering these funds as an option starting next month.

Any advice on how to allocate my funds in the NY plan? I had listed the different Vanguard fund options in my OP. Kid is still a baby, so I have room to be aggressive with my allocations.
I was looking to see if anyone answered your question, because I'd like to know also. Do they have age-based portfolio that automatically adjusts when the child reaches a certain age?
Yes, they do. https://www.nysaves.org/home/which-inve ... tions.html
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

Nearly A Moose
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Re: Help with Choosing Funds for Utah/NY 529 Plans

Post by Nearly A Moose » Thu Jun 29, 2017 8:43 pm

I'm not in either of those state funds (using DC for tax benefits), but I'm 100% in the S&P fund for my daughter (~3 yrs) (the closest to a total market fund I can access). I plan to stay there at least 5-10 years, and then might or might not glide. Since I don't pay any tax on the gains, my current thinking is that if my net worth is sufficiently large that I could also pay for college out of other savings or cash flow if needed, I might stay fully in equities until the money is spent. But that's a ways out still. Just my $0.02.

And, yes, your instincts are right. Plenty here like DFA funds, but don't invest in anything you don't understand.
Pardon typos, I'm probably using my fat thumbs on a tiny phone.

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sometimesinvestor
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Re: Help with Choosing Funds for Utah/NY 529 Plans

Post by sometimesinvestor » Thu Jun 29, 2017 9:25 pm

I am fairly familiar with NY.If you go NY pick age related aggressive and reexamine your options when the child is 12 or 13. At that time if performance has been great or the market has you worried reconsider but age related at younger ages will keep it simple but also satisfactory

neveragain
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Re: Help with Choosing Funds for Utah/NY 529 Plans

Post by neveragain » Fri Jun 30, 2017 9:04 am

Like the OP I also was considering both the NY and Utah plans, as I'm currently with Blackrock and wanting to switch.

I had one of my 529 plans with Fidelity a while back, and it did poorly, losing money in a good economy. (I would not recommend Fidelity for 529s, just an FYI in case anyone is considering).

I called UESP the other day to get information on switching my plans (rolling them over).

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