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  • 529 Help

    I have a 1 year old and have decided to open a 529 account.  I live in a state which does not offer a 529 plan and have therefore been looking at all of the different options.  I like the Utah, Nevada, and New York plans since they are all use Vanguard funds.  New York has a good low cost options.  Nevada allows me to go ahead and apply through my Vanguard account so it seems like I could monitor it easier, but I don't know if I like the fact that the total amount I can put in is in the 370K range.  However the Utah plan lets me put in up to 430K and I like the custom option but don't know if having to buy it through the state is more of a pain.  Any suggestions.  I know I cant go wrong with any of them but wondering which are the easiest to use and if the max your able to put in makes a difference.  Also any suggestions for the age based asset allocation.  I personally don't think I'd put anything into bonds until the kid is a least 10 or so as I'm rather aggressive.

  • #2
    All states offer a 529. Not all states offer a state tax break if you use their plan.

    I like Utah, but there's certainly nothing wrong with NV or NY. I'd look at them a lot more carefully if I didn't live in Utah.

    If $370K vs $430K is enough to actually change your mind from one plan to another, I wish I was your kid.

    If you want to be aggressive, be aggressive. I am in my 529s- 1/2 international, 1/2 US small value.
    Helping those who wear the white coat get a fair shake on Wall Street since 2011

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    • #3
      The maximum was an important consideration for me, but keep in mind this has nowhere to go but up in the current climate.  A state offering a max of $370k may increase theirs several times by  the time you're even close to the original amount.  You can always transfer plan assets to a different state. You'd probably have to sell the assets and repurchase in a new plan after the money transfers, which has potential opportunity costs if the market increases in the meantime.

      I too have no problem being aggressive, since we can finance some out of cash flow if need be and since this is really a multi-generational plan IMO.  I can gift remaining funds to a grandchild without affecting cash flow, letting it grow in the meantime.  I think MA also offers low cost plans but I think they have rules against ownership transfer.

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      • #4
        If the OP is a Washington state resident, it is true that there isn't a 529 plan option currently. The Washington state 529 plan is temporarily closed to new enrollments with a plan for that to change sometime this summer. There was a snafu with the prepaid tuition plan when the state tuitions dropped 15% over a two year period starting in 2015 since the payout rates for the tuition credits are based on those state school tuitions.

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        • #5
          No, I'm in Wyoming with no 529 plan.  There are no plans for one currently either.

          When I look at what private tuition will be in 18 years those numbers are ridiculous.

          I could cash flow tuition, but why not do it with tax free growth

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          • #6




            I have a 1 year old and have decided to open a 529 account.  I live in a state which does not offer a 529 plan and have therefore been looking at all of the different options.  I like the Utah, Nevada, and New York plans since they are all use Vanguard funds.  New York has a good low cost options.  Nevada allows me to go ahead and apply through my Vanguard account so it seems like I could monitor it easier, but I don’t know if I like the fact that the total amount I can put in is in the 370K range.  However the Utah plan lets me put in up to 430K and I like the custom option but don’t know if having to buy it through the state is more of a pain.  Any suggestions.  I know I cant go wrong with any of them but wondering which are the easiest to use and if the max your able to put in makes a difference.  Also any suggestions for the age based asset allocation.  I personally don’t think I’d put anything into bonds until the kid is a least 10 or so as I’m rather aggressive.
            Click to expand...


            Use all 3 states! That's what we have done (don't ask why).  :P

            As for investing options, I agree with you and do not like glidepaths. I have chosen 100% aggressive investments and my kids are 10 and 7. About 4 years before college we may dial down some risk but more likely would do so in other accounts (403b, taxable, Roths, etc).

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            • #7




              If the OP is a Washington state resident, it is true that there isn’t a 529 plan option currently. The Washington state 529 plan is temporarily closed to new enrollments with a plan for that to change sometime this summer. There was a snafu with the prepaid tuition plan when the state tuitions dropped 15% over a two year period starting in 2015 since the payout rates for the tuition credits are based on those state school tuitions.
              Click to expand...


              What a mess. I'm glad to see tuition dropping somewhere though.
              Helping those who wear the white coat get a fair shake on Wall Street since 2011

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              • #8
                Rosemont and Ithaca dropped their tuition by 45% this year.  Only 99.999% more to go!

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