529: regular vs GSP

[shogun0660]

Hey everyone, quick question on setting up a 529 plan for my young kids.

I've been doing 5-6 k a year into a regular 529 through vanguard (NV plan), and it came to my attention that the state I live in, PA, has a 529 Gauranteed Savings Plan. http://www.pa529.com/plan/guaranteed-savings-plan/#features-benefits
the fees are a little higher (0.35%, capped at 250/year if do e-correspondance) compared to 0.17% with VG.

My goal is to have enough saved by the time they're 18 to have option of paying for up to a private university (GSP semester rate of 17k for years 2016-7)

Would it make more sense to switch to that plan (have about 15-18 years left prior to college) given an almost gauranteed rate of return and continue with the yearly 5-6K?

Or is it more of a wash? Having a hard time crunching the numbers.

thanks for any help/advice!

 

 

 

[jhwkr542]

I've looked at it briefly, and it's hard for me to say.  I think it boils down to what will rise faster:  college tuition rates or a stock/bond portfolio (ratio of your choosing)?  While it doesn't actually appear guaranteed, I'd imagine if politicians want to keep their job it'll be effectively guaranteed, esp. since it made it through 2008.  I might lean towards the GSP but not by a lot.  Quite a few old threads on it over at bogleheads, probably worth a look.  Appears to be mixed opinions.

[shogun0660]

thanks! I'll head over to bogleheads and take a gander too.

much appreciated.