New 529 Plan

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Topic Author
hirlaw
Posts: 376
Joined: Tue Sep 29, 2009 10:20 am

New 529 Plan

Post by hirlaw »

I am planning on funding and setting up a 529 Plan for a new grandson.

I see Morningstar gives Gold ratings to the Illinois, Virginia, Utah & California plans. We (and the baby) live in a no income tax state. So, any state's plan will work.

Does anyone have experience with these 4 plans or others? Any recommendations?

Thanks!
Jboglecmu
Posts: 31
Joined: Sun Nov 03, 2019 7:56 am

Re: New 529 Plan

Post by Jboglecmu »

The Illinois plan is pretty solid with low cost Vanguard funds. I think its .12% ER for the age-based fund. But since you dont live in Illinois, I think Nevada is one of the best.
BogleDan
Posts: 28
Joined: Sun Jun 03, 2018 5:49 pm

Re: New 529 Plan

Post by BogleDan »

I used Nebraska for several years from out-of-state. Good fund options.

Last couple of years I have moved new contributions to NY's plan, which offers low fees and good Vanguard choices.
Topic Author
hirlaw
Posts: 376
Joined: Tue Sep 29, 2009 10:20 am

Re: New 529 Plan

Post by hirlaw »

Thanks for your replies
Topic Author
hirlaw
Posts: 376
Joined: Tue Sep 29, 2009 10:20 am

Re: New 529 Plan

Post by hirlaw »

Thanks for your replies
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abuss368
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Re: New 529 Plan

Post by abuss368 »

hirlaw wrote: Sun Sep 13, 2020 2:13 pm I am planning on funding and setting up a 529 Plan for a new grandson.

I see Morningstar gives Gold ratings to the Illinois, Virginia, Utah & California plans. We (and the baby) live in a no income tax state. So, any state's plan will work.

Does anyone have experience with these 4 plans or others? Any recommendations?

Thanks!
We went with Vanguard many years ago and selected an all in one target age based fund. It has worked well.

Vanguard offers very low costs 529 funds and have lowered costs over time.
John C. Bogle: “Simplicity is the master key to financial success."
Broken Man 1999
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Re: New 529 Plan

Post by Broken Man 1999 »

For the 529 plans for our grandchildren I use the Vanguard 529/Nevada plan. We save no state income taxes as Florida has no income taxes.

One nice thing about the Vanguard/Nevada 529 plan is it can be managed with your other Vanguard holdings. No other login needed. Your choice if you want the plans to be displayed with your other holdings, or just accessible when you want to see them.

I started with the Florida 529 plans, and as each plan reached the $3,000 minimum at Vanguard I would transfer to Vanguard. Shortly after the last plan was transferred, the Florida 529 plans started offering Vanguard funds. :oops:

Still, I like holding everything I can at Vanguard as I am pretty lazy by nature.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go. " -Mark Twain
snailderby
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Re: New 529 Plan

Post by snailderby »

If you want the simplicity of a single login, consider NV (Vanguard) or NH (Fidelity).
If you're looking for a plan with low fees, consider CA (ScholarShare) or IL (Bright Start).
If you're a fan of Mel's Unloved Midcaps, check out NY or UT (my529).
If you're a value tilter who wants access to DFA funds, consider UT (my529) or IL (Bright Start).

This isn't an exhaustive list, just some of the 529 plans that are occasionally recommended on here.
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abuss368
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Re: New 529 Plan

Post by abuss368 »

Broken Man 1999 wrote: Mon Sep 14, 2020 1:18 pm
Still, I like holding everything I can at Vanguard as I am pretty lazy by nature.
This was our strategy as well. Our state will allow a tax deduction to any state 529 plan. However having everything with Vanguard just provides a lot of simplicity.
John C. Bogle: “Simplicity is the master key to financial success."
inbox788
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Re: New 529 Plan

Post by inbox788 »

snailderby wrote: Mon Sep 14, 2020 1:22 pmIf you want the simplicity of a single login, consider NV (Vanguard) or NH (Fidelity).
If you're looking for a plan with low fees, consider CA (ScholarShare) or IL (Bright Start).
I went with ScholarShare for low fees and home state, though no state tax benefit. On $100k invested, I figure the difference in fees is $50-90 a year, which isn't all that much and might be lost or reduced in the performance difference, but making an equivalent comparison wasn't easily doable. And over a decade or more that's an extra $1000+ that can go towards books or a new computer. YMMV.

Index U.S. Equity Portfolio 0.01% 0.05% 0.00% 0.06%
https://www.scholarshare529.com/research/fees.shtml

Total Market Index Portfolio 0.02% 0.04% 0.05% 0.11%
https://www.fidelity.com/529-plans/new-hampshire

Total Stock Market Portfolio Stock - Large-Cap Blend 0.15%
https://investor.vanguard.com/529-plan/ ... nd-returns

Here's portfolio visualizer comparing TIEIX vs FSKAX vs VTSMX. I think these are the correct underlying funds. Unclear how the difference in fees or other corrections would truly differ, but you can see it's very minor and it's a crapshoot picking the winner at various times.

https://www.portfoliovisualizer.com/bac ... ion3_3=100

FWIW, I think transfer now would incur the small risk of being out of the market a short time because in-kind transfers aren't possible. A +/-1-2% variation is also a $1000+ crapshoot.
listedguru
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Joined: Mon Aug 17, 2015 1:05 pm

Re: New 529 Plan

Post by listedguru »

Does anyone here have any experience with a 529 plan with a stable value fund? I'm looking into the Colorado 529 plan's stable value option but it will be interesting to see what the rate is going to be for 2021 (get's announced the beginning of December). The rate for 2019 and 2020 was 2.49% net of all fees.

Are these SV funds safe? Any insight would be great.

Here's a link to a thread I started on BH:

viewtopic.php?f=1&t=325434&p=5495242#p5495242

Thanks,

-Guru
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