529: Your favorite low cost one?

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Phinance
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529: Your favorite low cost one?

Post by Phinance » Thu Apr 30, 2020 3:49 pm

Hi all, I’m expecting soon and live in Oregon, don’t feel like our current $300 Credit merits staying in-state.

I am looking for a low cost, age based index within a reputable company (Vanguard, Fidelity etc.) I’ve heard good things about 529s in CA, UT, NV, any experience with any of those?
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runner3081
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Re: 529: Your favorite low cost one?

Post by runner3081 » Thu Apr 30, 2020 4:09 pm

We have Ohio, plenty of VG funds.

PuckMan93
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Re: 529: Your favorite low cost one?

Post by PuckMan93 » Thu Apr 30, 2020 4:18 pm

+1 for Utah. Easy to use and good fund choices.

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Re: 529: Your favorite low cost one?

Post by vm81 » Thu Apr 30, 2020 4:18 pm

I have been funding NY 529 for years and have been very happy with the expenses and performance. Not sure if its the lowest cost or has had best performance (funds that I picked) but being NY resident provides tax benefits so had to stick in state.

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Re: 529: Your favorite low cost one?

Post by TheDDC » Thu Apr 30, 2020 4:21 pm

Virginia's 529 seems good. There are Vanguard institutional options and the overall plan fees are low. I'm surprised I don't hear more about Virginia's 529 here, actually.

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Re: 529: Your favorite low cost one?

Post by DiMAn0684 » Thu Apr 30, 2020 4:21 pm

MA has Fidelity funds, pretty reasonable price on targeted index options. I am paying 0.14% on 2036 Index Fund Portfolio.

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Re: 529: Your favorite low cost one?

Post by Ruttiger » Thu Apr 30, 2020 4:28 pm

I started about 20 years ago in the Utah plan, but live in NY. After a few years the NY plan improved and had state resident benefits so opened one there, but kept the Utah plan. Was happy with both. The savingforcollege website was very helpful in selecting and still looks to be a useful resource.

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Re: 529: Your favorite low cost one?

Post by Phinance » Thu Apr 30, 2020 4:32 pm

How does the Utah plan compare to California in overall expenses? I am trying to find a website for maintenance/investment fee comparison across all 529s, any ideas? Thx again :)
"Our life is frittered away by detail. Simplify, simplify." -Thoreau

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Re: 529: Your favorite low cost one?

Post by stilllurking » Thu Apr 30, 2020 4:34 pm

New York for sure. 0.13% on all funds, static or age based. Reasonable asset allocation with no reit or commodities tilts.

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Re: 529: Your favorite low cost one?

Post by bgf » Thu Apr 30, 2020 4:35 pm

California and Georgia now both use TIAA. Their managed enrollment year portfolios are 0.19-0.24 all in expense ratios depending on proximity to enrollment. Static and Guanranteed portfilios are also offered.
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Re: 529: Your favorite low cost one?

Post by stilllurking » Thu Apr 30, 2020 4:36 pm

Phinance wrote:
Thu Apr 30, 2020 4:32 pm
How does the Utah plan compare to California in overall expenses? I am trying to find a website for maintenance/investment fee comparison across all 529s, any ideas? Thx again :)
Savingforcollege.com

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Re: 529: Your favorite low cost one?

Post by Gleevec » Thu Apr 30, 2020 5:14 pm

California ScholarShare529 has US Total Stock Market (and US Large Cap) at 0.06% ER all inclusive, I have not found a competitor in that range, would love to hear lowest all-inclusive ER from other plans: https://www.scholarshare529.com/research/fees.shtml

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529 Vote: Utah vs Nevada vs California

Post by Phinance » Thu Apr 30, 2020 6:38 pm

[Thread merged into here, see below. --admin LadyGeek]

I posted earlier, but was hoping to take a vote (please excuse me if this is redundant or violates any boglehead rules).

Assuming a negligible in-state benefit, which of the following 529s would you pick if you were starting in 2020?
-Utah
-Nevada
-California
-Other?
"Our life is frittered away by detail. Simplify, simplify." -Thoreau

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Re: 529: Your favorite low cost one?

Post by vasaver » Thu Apr 30, 2020 6:43 pm

TheDDC wrote:
Thu Apr 30, 2020 4:21 pm
Virginia's 529 seems good. There are Vanguard institutional options and the overall plan fees are low. I'm surprised I don't hear more about Virginia's 529 here, actually.

-TheDDC
I am also surprised that Virginia isn't mentioned more often here (largest in the country). Virginia allows for K-12 private school qualified withdrawals on VA state income tax (unlike NY and CA which are non-qualified I believe).

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Last edited by vasaver on Thu Apr 30, 2020 11:46 pm, edited 4 times in total.

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Re: 529: Your favorite low cost one?

Post by Spirit Rider » Thu Apr 30, 2020 6:43 pm

Gleevec wrote:
Thu Apr 30, 2020 5:14 pm
California ScholarShare529 has US Total Stock Market (and US Large Cap) at 0.06% ER all inclusive, I have not found a competitor in that range, would love to hear lowest all-inclusive ER from other plans:
Utah is not really that competitive any more. Last time I looked their TSM ER was >= 300% higher than California.

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Phinance
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Re: 529: Your favorite low cost one?

Post by Phinance » Thu Apr 30, 2020 6:50 pm

Thanks Spirit Rider
"Our life is frittered away by detail. Simplify, simplify." -Thoreau

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Re: 529 Vote: Utah vs Nevada vs California

Post by sycamore » Thu Apr 30, 2020 7:57 pm

I'd first pick the Vanguard 529 Nevada plan because it's integrated with my Vanguard online account. Note there are Nevada 529 plans from other providers, not just from Vanguard.

Second pick is is the Utah my529 plan. Except for the lack of direct integration with Vanguard accounts, it'd be my #1 choice.

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Re: 529: Your favorite low cost one?

Post by LadyGeek » Thu Apr 30, 2020 8:17 pm

In order to provide appropriate advice, it's best to keep all the information in one spot. I merged Phinance's duplicate thread with the original.
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Re: 529: Your favorite low cost one?

Post by leehamster » Thu Apr 30, 2020 8:20 pm

Vanguard runs a plan in Nevada. I'm able to manage the funds for my kids from within my Vanguard account, including requesting checks to go to college. It's convenient, simple and low-fee.

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Re: 529: Your favorite low cost one?

Post by FrugalProfessor » Thu Apr 30, 2020 8:22 pm

Gleevec wrote:
Thu Apr 30, 2020 5:14 pm
California ScholarShare529 has US Total Stock Market (and US Large Cap) at 0.06% ER all inclusive, I have not found a competitor in that range, would love to hear lowest all-inclusive ER from other plans: https://www.scholarshare529.com/research/fees.shtml
+1. Best in the country by far. If not for my $10k/year in-state 529 deduction (I live outside of CA), I'd be 100% invested in the 0.06% ER index fund.

https://www.bogleheads.org/wiki/529_cos ... dual_Funds
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Re: 529: Your favorite low cost one?

Post by AirTimeMD » Thu Apr 30, 2020 9:23 pm

I am in the Utah 529 and this thread is eye opening that Utah isn't the best 529 in the country as I believe it was when I originally decided to join. Is it worth opening an account with CA and can I transfer from Utah to CA?

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Re: 529: Your favorite low cost one?

Post by Spirit Rider » Thu Apr 30, 2020 10:56 pm

I realize it may be considered blasphemy, but personally I don't know if I would rollover any tax advantaged account for 10 or 15 basis points.

If you are starting out new and/or looking to contribute > your state's deduction limit. Then I would heavily factor in the lowest ERs.

Sometimes, I think Bogleheads lack perspective.

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Re: 529: Your favorite low cost one?

Post by BionicBillWalsh » Thu Apr 30, 2020 11:11 pm

Illinois Bright Start has:

VTSAX; 0.10 ER
VFNIX; 0.10 ER
VBTLX; 0.11 ER

Have a whole host of other Vanguard options as well.
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Re: 529: Your favorite low cost one?

Post by wootwoot » Thu Apr 30, 2020 11:17 pm

FrugalProfessor wrote:
Thu Apr 30, 2020 8:22 pm
Gleevec wrote:
Thu Apr 30, 2020 5:14 pm
California ScholarShare529 has US Total Stock Market (and US Large Cap) at 0.06% ER all inclusive, I have not found a competitor in that range, would love to hear lowest all-inclusive ER from other plans: https://www.scholarshare529.com/research/fees.shtml
+1. Best in the country by far. If not for my $10k/year in-state 529 deduction (I live outside of CA), I'd be 100% invested in the 0.06% ER index fund.

https://www.bogleheads.org/wiki/529_cos ... dual_Funds
By far? That's a stretch. A few basis points here and there may or may not be worth it. Utah's customer service is top notch, the California 529 hasn't been as good in that area from my experience.

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Re: 529: Your favorite low cost one?

Post by Miriam2 » Thu Apr 30, 2020 11:42 pm

Phinance wrote: Hi all, I’m expecting soon and live in Oregon, don’t feel like our current $300 Credit merits staying in-state.

I am looking for a low cost, age based index within a reputable company (Vanguard, Fidelity etc.) I’ve heard good things about 529s in CA, UT, NV, any experience with any of those? . . .

How does the Utah plan compare to California in overall expenses? I am trying to find a website for maintenance/investment fee comparison across all 529s, any ideas? Thx again :) . . .

Assuming a negligible in-state benefit, which of the following 529s would you pick if you were starting in 2020?
-Utah
-Nevada
-California
-Other?
I'm researching this issue now and here are the best articles I've found on 529 Plans.

Morningstar's Guide to College Savings
Kantrowitz College Savings Handbook

Morningstar has an excellent comparison article, rating the different plans.

Morningstar: Rating the Top 529 College Savings Plans

Also, my understanding is that many of these plans all use the same stable of funds, usually Vanguard, DFA, etc., and most of them offer several different ways you can invest with those funds: the age-based portfolio, a static AA portfolio, or a DIY portfolio.

For this reason, unless you get a state tax break for investing in your state plan, almost any one of the good quality, low cost 529 Plans will do. Each one may have a feature you like or don't like, but over-all, the good ones are very similar. After a while, like so much in investing, being too detailed in trying to select the perfect plan will drive you nuts :mrgreen: (and won't matter in the long run)

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Re: 529: Your favorite low cost one?

Post by Miriam2 » Fri May 01, 2020 12:08 am

Helpful recent forum thread on the 529 Plans -

Which 529 Plan?
. . . with useful advice from Livesoft -
livesoft wrote:
Thu Nov 21, 2019 6:26 am
Many state 529 pans now use Vanguard Index funds. The landscape was quite a bit different more than 15 years ago when we were using the Utah 529 plan. There are many many possible choices nowadays, but it is hard to go wrong for the person who is aware that low-expense-ratio, passively-managed Index funds are the way to go. The decision is more about how easy it is to use the plan's web site once one goes the index fund route.

https://www.bogleheads.org/wiki/529_plans_by_state shows more than 30 states use Vanguard funds.

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Re: 529: Your favorite low cost one?

Post by Gleevec » Fri May 01, 2020 12:40 am

wootwoot wrote:
Thu Apr 30, 2020 11:17 pm
FrugalProfessor wrote:
Thu Apr 30, 2020 8:22 pm
Gleevec wrote:
Thu Apr 30, 2020 5:14 pm
California ScholarShare529 has US Total Stock Market (and US Large Cap) at 0.06% ER all inclusive, I have not found a competitor in that range, would love to hear lowest all-inclusive ER from other plans: https://www.scholarshare529.com/research/fees.shtml
+1. Best in the country by far. If not for my $10k/year in-state 529 deduction (I live outside of CA), I'd be 100% invested in the 0.06% ER index fund.

https://www.bogleheads.org/wiki/529_cos ... dual_Funds
By far? That's a stretch. A few basis points here and there may or may not be worth it. Utah's customer service is top notch, the California 529 hasn't been as good in that area from my experience.
It’s almost 0.1% higher for Utah 529 total stock market than Cali 529. Would anyone on this forum pay 0.1% higher for a Schwab total stock market fund vs. Vanguard’s due to Schwab’s better customer service?

I moved my 529 money from both Utah and Nevada to California, it’s a slam dunk at this ER difference (0.1% difference over 18 years per kid) and paperwork is as easy as that required for a new savings account for those that like to chase yields

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Re: 529: Your favorite low cost one?

Post by Miriam2 » Fri May 01, 2020 2:16 am

Gleevec wrote: I moved my 529 money from both Utah and Nevada to California, it’s a slam dunk at this ER difference (0.1% difference over 18 years per kid) and paperwork is as easy as that required for a new savings account for those that like to chase yields
However, there are other 529 Plan factors to consider in making a choice of plans.

For example, you moved from a state (Utah 529) that offers age-based investment plans and static investment plans with a choice of domestic equities only or domestic plus international equities. The plan you moved to (California ScholarShare529) only offers age-based/enrollment year and static/multi-fund investment plans with international equities, which you may not want. The only way to avoid international equities is to select a more conservative AA, which you may not want, and then this comes with a dose of high yield junk bonds :wink:

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Re: 529: Your favorite low cost one?

Post by Bfwolf » Fri May 01, 2020 3:17 am

Why don't you feel like the $300 tax credit merits using OR's plan? All-in expense ratios for the target year plans are 0.3% which is more than other states, but not bad if you're getting a $300 tax credit every year. I would consider putting in the minimum to get the $300 tax credit and then putting the rest of your contribution in a cheaper plan. The minimum required to get the $300 credit depends on your married filing jointly income. Details in this link:

https://www.oregoncollegesavings.com/fa ... gory/Taxes

Edit: Looking back in your post history I see you've already asked this question and gotten the same response. Also seems you're probably north of $250K income so you'd have to put in $6000 in the 529 to get the full $300 tax credit. Still seems worth it to me. It will definitely be worth it to use Oregon as your kid gets older and there's fewer years of the high expense ratios between the kid and college. It's also possible that Oregon will follow the trend of other states and reduce its administrative fee to be more competitive, in which case you'll feel very happy having grabbed that $300 credit and only paid a few years of the marginally higher fee.

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Re: 529: Your favorite low cost one?

Post by wootwoot » Fri May 01, 2020 12:58 pm

Miriam2 wrote:
Fri May 01, 2020 2:16 am
Gleevec wrote: I moved my 529 money from both Utah and Nevada to California, it’s a slam dunk at this ER difference (0.1% difference over 18 years per kid) and paperwork is as easy as that required for a new savings account for those that like to chase yields
However, there are other 529 Plan factors to consider in making a choice of plans.

For example, you moved from a state (Utah 529) that offers age-based investment plans and static investment plans with a choice of domestic equities only or domestic plus international equities. The plan you moved to (California ScholarShare529) only offers age-based/enrollment year and static/multi-fund investment plans with international equities, which you may not want. The only way to avoid international equities is to select a more conservative AA, which you may not want, and then this comes with a dose of high yield junk bonds :wink:
This

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Re: 529: Your favorite low cost one?

Post by stilllurking » Fri May 01, 2020 2:35 pm

wootwoot wrote:
Fri May 01, 2020 12:58 pm
Miriam2 wrote:
Fri May 01, 2020 2:16 am
Gleevec wrote: I moved my 529 money from both Utah and Nevada to California, it’s a slam dunk at this ER difference (0.1% difference over 18 years per kid) and paperwork is as easy as that required for a new savings account for those that like to chase yields
However, there are other 529 Plan factors to consider in making a choice of plans.

For example, you moved from a state (Utah 529) that offers age-based investment plans and static investment plans with a choice of domestic equities only or domestic plus international equities. The plan you moved to (California ScholarShare529) only offers age-based/enrollment year and static/multi-fund investment plans with international equities, which you may not want. The only way to avoid international equities is to select a more conservative AA, which you may not want, and then this comes with a dose of high yield junk bonds :wink:
This
Seeing how they go up ever so slightly in expenses seems minuscule. Does anyone know if the ERs are static throughout the life of the investment (provided there are no direct changes to the ERs)?

For example, if you start with the 2030/2031 portfolio, as it "ages" and we get to 2028 (three years out), does that ER go up to 0.13% like it shows for the 2022/2023 which is three years out from today? It seems confusing and I saw that also on the Fidelity line up of 529s as well.

Passive Enrollment Year Portfolios
Investment Portfolio Plan Manager Fee(1)(2) Board Administrative Fee(1)(3) Estimated Expenses of an Investment Portfolio's Underlying Investments(4) Total Annual Asset-Based Fees(5)
2036/2037 Enrollment Portfolio Passive 0.01% 0.00% 0.11% 0.12%
2034/2035 Enrollment Portfolio Passive 0.01% 0.00% 0.11% 0.12%
2032/2033 Enrollment Portfolio Passive 0.01% 0.00% 0.11% 0.12%
2030/2031 Enrollment Portfolio Passive 0.01% 0.00% 0.11% 0.12%
2028/2029 Enrollment Portfolio Passive 0.01% 0.00% 0.12% 0.13%
2026/2027 Enrollment Portfolio Passive 0.01% 0.00% 0.12% 0.13%
2024/2025 Enrollment Portfolio Passive 0.01% 0.00% 0.13% 0.14%
2022/2023 Enrollment Portfolio Passive 0.01% 0.00% 0.12% 0.13%
2020/2021 Enrollment Portfolio Passive 0.01% 0.00% 0.09% 0.10%
Enrollment Year Portfolio Passive 0.01% 0.00% 0.07% 0.08%

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Re: 529 Vote: Utah vs Nevada vs California

Post by Broken Man 1999 » Fri May 01, 2020 2:41 pm

sycamore wrote:
Thu Apr 30, 2020 7:57 pm
I'd first pick the Vanguard 529 Nevada plan because it's integrated with my Vanguard online account. Note there are Nevada 529 plans from other providers, not just from Vanguard.

Second pick is is the Utah my529 plan. Except for the lack of direct integration with Vanguard accounts, it'd be my #1 choice.
I use the Vanguard-Nevada plan also. Easy to manage. I'm lazy so it is perfect for me.

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Re: 529: Your favorite low cost one?

Post by Phinance » Fri May 01, 2020 3:12 pm

Thanks for all the answers, very helpful. You have changed my thinking:
A $300 dollar OR tax credit probably outweighs >> any savings I would be incurring moving from OR (0.30% overall expense) to CA (0.15% overall expense). Is this correct?
"Our life is frittered away by detail. Simplify, simplify." -Thoreau

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Re: 529: Your favorite low cost one?

Post by Miriam2 » Fri May 01, 2020 4:34 pm

Phinance wrote:
Fri May 01, 2020 3:12 pm
Thanks for all the answers, very helpful. You have changed my thinking:
A $300 dollar OR tax credit probably outweighs >> any savings I would be incurring moving from OR (0.30% overall expense) to CA (0.15% overall expense). Is this correct?
Remember that these 529 Plans change things frequently, so making your plan or switch today may be of no value tomorrow when Oregon or California change their plan expenses or funds, etc. For example, in April the Utah plan announced that expenses for some funds were being lowered by their fund providers Vanguard and DFA -

https://my529.org/wp-content/uploads/20 ... letter.pdf - (pg 2)

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Re: 529: Your favorite low cost one?

Post by Spirit Rider » Fri May 01, 2020 5:17 pm

Miriam2 wrote:
Fri May 01, 2020 4:34 pm
Phinance wrote:
Fri May 01, 2020 3:12 pm
Thanks for all the answers, very helpful. You have changed my thinking:
A $300 dollar OR tax credit probably outweighs >> any savings I would be incurring moving from OR (0.30% overall expense) to CA (0.15% overall expense). Is this correct?
Remember that these 529 Plans change things frequently, so making your plan or switch today may be of no value tomorrow when Oregon or California change their plan expenses or funds, etc. For example, in April the Utah plan announced that expenses for some funds were being lowered by their fund providers Vanguard and DFA -
https://my529.org/wp-content/uploads/20 ... letter.pdf - (pg 2)
If you note, those are all fairly high ER active funds that you probably shouldn't be using in the first place. ERs of 0.25% - 0.50% are not really something to brag about.

The dirty little secret of the Utah and Nevada plans is that the lagging cost reductions seen compared to other plans is not due to Vanguard index fund ERs. It is the state's own administrative fees added to the net ER that is keeping those plans ERs from being highly competitive.

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Re: 529: Your favorite low cost one?

Post by Miriam2 » Fri May 01, 2020 6:21 pm

Miriam2 wrote:
Fri May 01, 2020 4:34 pm
Phinance wrote:
Fri May 01, 2020 3:12 pm
Thanks for all the answers, very helpful. You have changed my thinking:
A $300 dollar OR tax credit probably outweighs >> any savings I would be incurring moving from OR (0.30% overall expense) to CA (0.15% overall expense). Is this correct?
Remember that these 529 Plans change things frequently, so making your plan or switch today may be of no value tomorrow when Oregon or California change their plan expenses or funds, etc. For example, in April the Utah plan announced that expenses for some funds were being lowered by their fund providers Vanguard and DFA -
https://my529.org/wp-content/uploads/20 ... letter.pdf - (pg 2)
Spirit Rider wrote:
Fri May 01, 2020 5:17 pm
If you note, those are all fairly high ER active funds that you probably shouldn't be using in the first place. ERs of 0.25% - 0.50% are not really something to brag about.
I see, yes they are the DFA funds with higher ER's.
However, Utah does have portfolios using only Vanguard funds with lower ER's. The DFA funds are available in the customized DIY portfolios.
Spirit Rider wrote:The dirty little secret of the Utah and Nevada plans is that the lagging cost reductions seen compared to other plans is not due to Vanguard index fund ERs. It is the state's own administrative fees added to the net ER that is keeping those plans ERs from being highly competitive.
Morningstar's most recent "Rating the Top 529 College Savings Plans" ranked Utah in the top 4 (Gold-rated) due to the Utah plan following "industry best practices, offering a well-researched asset-allocation approach, a robust process for selecting underlying investments, an appropriate set of options to meet investor needs, strong oversight from the state and investment manager, and low fees." These are important considerations.

Morningstar further said that Utah's my529 plan continues to distinguish itself for its "excellent state oversight and program management, best-in-class investment options, and thoughtful investment philosophy" and that Utah "enhanced its principal protection options at the end of the age-based glide path where balances are highest." Again, important factors.

Morningstar did drop Nevada from Gold to Silver-rated due to the Nevada Plan's fees. However, it's not that the Nevada plan charges high fees, just not the lowest:
from Morningstar:
As the industry continues to lower fees, Nevada's fees remain below average but haven't kept pace with the cheapest plans, so the plan no longer warrants Morningstar's highest rating. At Silver, we still highly recommend it, owing to its stellar underlying Vanguard index funds and relatively smooth transition from stocks to bonds within the age-based portfolios.
In other words, it seems to me that so long as the 529 Plan has low fees, high quality investment options, a well-reasoned glide path to protect our assets just before graduation, top notch management and oversight, and is highly regarded by the financial industry, I'm not sure I would base my plan selection decision on which plan has slightly higher or lower fees today when they may change next year.
Last edited by Miriam2 on Sun May 03, 2020 5:29 am, edited 1 time in total.

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Re: 529: Your favorite low cost one?

Post by ronin » Fri May 01, 2020 8:12 pm

Along the lines of the previous post, I too think there may be more to the story than just who can offer the absolute lowest fees.

I’d be curious to hear experiences with customer service and ease of use when it’s time to deploy funds, etc. this might be more telling of the overall competence of the plan administration.

I’m currently using Utah’s plan for my kids. Still in the accumulation phase so no personal experience with what it’s like once the college years arrive.

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Re: 529: Your favorite low cost one?

Post by Bfwolf » Mon May 04, 2020 3:14 am

Phinance wrote:
Fri May 01, 2020 3:12 pm
Thanks for all the answers, very helpful. You have changed my thinking:
A $300 dollar OR tax credit probably outweighs >> any savings I would be incurring moving from OR (0.30% overall expense) to CA (0.15% overall expense). Is this correct?
I think this is true for your first $6,000 contributed per year. Above that, I'd use a different plan, though admittedly this adds complexity.

Buford T Justice
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Re: 529: Your favorite low cost one?

Post by Buford T Justice » Mon May 04, 2020 5:56 pm

One definitely needs to review plans over the years. I started out with one in Utah / one in home state (for the deduction on the in state plan). After several years the home state reduced fees comparable to Utah so I consolidated into the home state... administrator to administrator … easy.

Don't get paralyzed by the data... start investing and you can move the money to a better fit down the line.
Last edited by Buford T Justice on Mon May 04, 2020 6:11 pm, edited 1 time in total.

TheDDC
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Re: 529: Your favorite low cost one?

Post by TheDDC » Mon May 04, 2020 6:09 pm

How easy is it to roll a 529 from one state plan to another? Do you have to pull out of the market as you wait for the rollover or is it a seamless electronic transfer?

My state has Vanguard funds (hell the Vanguard HQ is here) in our 529, but the plan fees are outrageous. However we get the same tax benefits no matter which state 529 plan we choose. The only benefit of using our own state plan is it is not counted negatively against your EFC for an in-state school.

Also, do Nevada and Utah allow you to build your own portfolio? Virginia’s 529, for instance, seems to have static passive portfolios with either all international or domestic.

-TheDDC
Rules to wealth building: 90-100% VTSAX piled high and deep, 0-10% VIGAX tilt, 0% given away to banks, minimize amount given to medical-industrial complex

Miriam2
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Re: 529: Your favorite low cost one?

Post by Miriam2 » Mon May 04, 2020 6:45 pm

TheDDC wrote: . . .Also, do Nevada and Utah allow you to build your own portfolio? Virginia’s 529, for instance, seems to have static passive portfolios with either all international or domestic.
The Utah my529 Plan has 3 different investment styles to choose from (see menu tab):

1 - The Age-Based Investment Options - like a Target Fund that glides down the AA from stock heavy to bond/fixed income heavy as the graduation date gets closer. There are 4 different AA glide path portfolios to choose from, with or without international equities & bonds.

2 - Static Investment Options - like a Vanguard LifeStrategy fund, the AA never changes (you would have to switch portfolios to change your AA); there are 7 different levels of AA, with or without international.

3 - Customized Investment Options - here you can build your own portfolio using Vanguard and Dimensional Funds, a Pimco Income fund, and an FDIC insured account.

BernardShakey
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Re: 529: Your favorite low cost one?

Post by BernardShakey » Mon May 04, 2020 10:07 pm

Buford T Justice wrote:
Mon May 04, 2020 5:56 pm
Don't get paralyzed by the data... start investing and you can move the money to a better fit down the line.
Great advice....get started and then monitor and look around for better options down the road. California's ScholarShare is great. Low fees, super easy, no customer service problems.

I also like the Fidelity Unique program (state of NH). I've used it for two decades. It might not be the absolute best one out there (I haven't looked lately) but it's a solid choice. Lots of good low cost passive options...and a 2% cash back Fidelity credit card that dumps the cash right into the 529.
A key to investing is having a well-calibrated sense of your future regret.

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1789
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Re: 529: Your favorite low cost one?

Post by 1789 » Mon May 04, 2020 10:40 pm

Phinance wrote:
Fri May 01, 2020 3:12 pm
Thanks for all the answers, very helpful. You have changed my thinking:
A $300 dollar OR tax credit probably outweighs >> any savings I would be incurring moving from OR (0.30% overall expense) to CA (0.15% overall expense). Is this correct?
OP,

We also live in OR. OR 529 has Vanguard institutional funds (for example US TSM with ER = 0.02%) with account maintenance fee of 0.25% = 0.27% in total. I doubt you can get a better deal by moving to another 529 plan (OR gives you 300$ max per year/per kid depending on AGI). I think it would be a mistake if you pass this.

Here is what i am planning to do, but the only reason why i do is simplicity (all our accounts are at Fidelity) not because there are better funds. We have around 30k or so for our first kid (3 years old) that i am going to transfer to Fidelity 529, but will keep OR account open. And then do maybe another 10k or so in next 2 years and then do rollover to Fidelity again.

I plan to repeat same process for out new baby coming next month. So we can get tax credit for 600$ and still do annual (or once in 2 years) rollovers to Fidelity 529 to keep all accounts in one place. OR doesn't punish you with recapture tax when doing rollovers to another plan.

Good luck
"My conscience wants vegetarianism to win over the world. And my subconscious is yearning for a piece of juicy meat. But what do i want?" (Andrei Tarkovsky)

Thegame14
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Re: 529: Your favorite low cost one?

Post by Thegame14 » Mon May 04, 2020 11:23 pm

NYsaves.org

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Phinance
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Re: 529: Your favorite low cost one?

Post by Phinance » Wed May 06, 2020 11:10 am

Thx 1789, will do and congrats on your new baby :)
"Our life is frittered away by detail. Simplify, simplify." -Thoreau

gr7070
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Re: 529: Your favorite low cost one?

Post by gr7070 » Wed May 06, 2020 11:18 am

I have an Iowa plan. They were one of the early Vanguard options.

Was excellent at the time.

TheDDC
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Re: 529: Your favorite low cost one?

Post by TheDDC » Wed May 06, 2020 11:46 pm

I could have sworn that the Nevada Vanguard 529 plan let you hold your own customized ETF/mutual fund portfolio. In fact, I know I saw a page with the 529 allowable ETF/MFs listed. Now I can't find it. Can anyone tell me which Vanguard (or any) 529 plan allows you to build your own portfolio with your own MF/ETFs instead of these ridiculous age-based or "static" things?

-TheDDC
Rules to wealth building: 90-100% VTSAX piled high and deep, 0-10% VIGAX tilt, 0% given away to banks, minimize amount given to medical-industrial complex

Miriam2
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Re: 529: Your favorite low cost one?

Post by Miriam2 » Thu May 07, 2020 12:31 am

TheDDC wrote:
Wed May 06, 2020 11:46 pm
I could have sworn that the Nevada Vanguard 529 plan let you hold your own customized ETF/mutual fund portfolio. In fact, I know I saw a page with the 529 allowable ETF/MFs listed. Now I can't find it. Can anyone tell me which Vanguard (or any) 529 plan allows you to build your own portfolio with your own MF/ETFs instead of these ridiculous age-based or "static" things?
Utah does have a Customized Investment Option where you can build your own portfolio using Vanguard and Dimensional Funds, a Pimco Income fund, and an FDIC insured account. While you can't surf the mutual fund universe and create your own portfolio, why would you want to if the 529 plan offers very good funds at low cost? Seems it would add complexity and it would take up your time and simply may not be worth it :wink:

LFKB
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Re: 529: Your favorite low cost one?

Post by LFKB » Thu May 07, 2020 1:39 am

I use Nevada because they have low cost Vanguard investment options and it interfaces directly with the Vanguard website/app and I didn’t want to have to manage another platform

sycamore
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Re: 529: Your favorite low cost one?

Post by sycamore » Thu May 07, 2020 6:58 am

TheDDC wrote:
Wed May 06, 2020 11:46 pm
I could have sworn that the Nevada Vanguard 529 plan let you hold your own customized ETF/mutual fund portfolio. In fact, I know I saw a page with the 529 allowable ETF/MFs listed. Now I can't find it. Can anyone tell me which Vanguard (or any) 529 plan allows you to build your own portfolio with your own MF/ETFs instead of these ridiculous age-based or "static" things?

-TheDDC
They're here: https://investor.vanguard.com/529-plan/ ... nd-returns. Technically they don't offer direct access to ETF / mutual funds - instead they offer "portfolio" products, each a wrapper around the underlying ETF / mutual funds.

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