529 plan choices

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Topic Author
ecocredit
Posts: 27
Joined: Wed Jul 02, 2014 11:25 pm

529 plan choices

Post by ecocredit »

We're currently California residents. Our child will hopefully go to college and we'd like to save up starting now. We don't know if he'll end up in-state or out of state. We're evaluating various 529 plans. We see that California state doesn't offer any tax incentives to invest in 529s so we were planning to go with Vanguard's plan as we already have a relationship with them. Are there any other plans and/or administrators we should consider? We also found out that recent changes to 529 laws allowing funds to be used for K-12 education expenses. This is attractive as cost of education is an issue for us.
Grt2bOutdoors
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Location: New York

Re: 529 plan choices

Post by Grt2bOutdoors »

Look at NYS529Direct - nysaves.org and Utah 529 plan - my529.org
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
lakpr
Posts: 7715
Joined: Fri Mar 18, 2011 9:59 am

Re: 529 plan choices

Post by lakpr »

I am in NJ, in a similar situation. No state incentives for investing in 529 plan (unless you count a NJ-BEST scholarship of $1500 if you hold at least $3600 in the plan for 12 years, which comes out to be a 3.3% APR). So apart from investing the minimum to capture that NJ-BEST scholarship, we have invested in the NY-SAVES 529 plan. Very happy with the available choices.
Volando
Posts: 65
Joined: Tue Feb 23, 2021 7:52 pm

Re: 529 plan choices

Post by Volando »

Grt2bOutdoors wrote: Mon Jun 07, 2021 6:16 am Look at NYS529Direct - nysaves.org and Utah 529 plan - my529.org
Also in Utah's plan. Morningstar runs a report where they compare the different state plans and rank them across various metrics. Utah has consistently been rated highly over the last few years. They also offer vanguard plans. You won't get to use them from you main vanguard account but at least it's an option to consider.
Broken Man 1999
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Location: West coast of Florida, inland on high ground!

Re: 529 plan choices

Post by Broken Man 1999 »

For the grandchildren I use the Vanguard/Nevada 529 plan.

I could probably shop harder and save a few points on another plan, but the ease of having everything under my Vanguard login tilts my decision to Vanguard.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go." - Mark Twain
atomicrc11
Posts: 201
Joined: Sat Nov 08, 2008 8:51 pm

Re: 529 plan choices

Post by atomicrc11 »

If your state doesn't have any tax advantages or is a 0% income tax state, the Nevada Vanguard 529 and the New Hampshire Fidelity 529 are both great plans. Just pick your preferred investment house. The costs are low all around.

Should you move, you can always rollover to the new state plan should there be tax benefits. For example, Fidelity also runs the 529 plans in Arizona, Connecticut, Delaware, and Massachusetts some of which have a state income tax deduction.
BluesH
Posts: 100
Joined: Mon Nov 19, 2018 1:31 pm

Re: 529 plan choices

Post by BluesH »

I also reside in California (no tax deduction for 529), so when our granddaughter was born 18 years ago, I used the Nevada/Vanguard 529 account. No regrets - it's been a great plan.
Topic Author
ecocredit
Posts: 27
Joined: Wed Jul 02, 2014 11:25 pm

Re: 529 plan choices

Post by ecocredit »

thank you all!
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