Starting a 529 Plan for newborn son. Know there are many options to chose from. Open to any and all advice or recommendations.
529 Plan Recommendations
14,476 Views |
70 Replies |
Last: 2 yr ago by RGRAg1/75
I have 2 kids, 14 & 12, their plans have been with Edward Jones and the typical American Funds variety pack of funds. A couple years ago I moved it from a few funds into a target date fund that gradually moves from equities to safer options as it nears the year they enter college. They have done well and have met our goals, however if I had it to do again, I would go a different route.
The fees on those managed funds are high and you would likely end up ahead managing your own. I'd probably open a TD Ameritrade (or something similar) and start a 529 and invest in market based ETF's.
I'd like to hear the opinions of actual experts though.
The fees on those managed funds are high and you would likely end up ahead managing your own. I'd probably open a TD Ameritrade (or something similar) and start a 529 and invest in market based ETF's.
I'd like to hear the opinions of actual experts though.
Utah
NY
Iowa which is managed by Vanguard
I like the NextGen Advisor Select (not the Client Direct) plan. My rationale is it has active & passive options, 4 different age based providers, and multiple managers for each asset sleeve inside 1 plan. I feel it covers many bases depending on your assumptions moving forward (active vs. passive, US vs. foreign, larges vs small, ESG). Some asset managers are better at times than others, and in different sleeves than others. Convertible C's or A's at NAV is nice depending on your exact situation.
American funds, Virginia plan.
Started for my daughter and Son when they were born. $300 per month for each. Daughter finished undergrad last year with $30k remaining in her account that she's now using for Law School.
Son is in 10th grade and his account is fully funded for state school.
Started for my daughter and Son when they were born. $300 per month for each. Daughter finished undergrad last year with $30k remaining in her account that she's now using for Law School.
Son is in 10th grade and his account is fully funded for state school.
I did Iowa back when kids were little, oldest graduates HS in May.
At the time Iowa was one of the best rated with minimal fees.
At the time Iowa was one of the best rated with minimal fees.
WI, here. Their kids looked the happiest on their website.
ORAggieFan said:
Utah
Utah is what we went with also.
AggieDruggist89 said:
American funds, Virginia plan.
Started for my daughter and Son when they were born. $300 per month for each. Daughter finished undergrad last year with $30k remaining in her account that she's now using for Law School.
Son is in 10th grade and his account is fully funded for state school.
My twins are with the same. Did you invest in the 529 target date, college growth fund, mix ??
JD,Johnny Danger said:AggieDruggist89 said:
American funds, Virginia plan.
Started for my daughter and Son when they were born. $300 per month for each. Daughter finished undergrad last year with $30k remaining in her account that she's now using for Law School.
Son is in 10th grade and his account is fully funded for state school.
My twins are with the same. Did you invest in the 529 target date, college growth fund, mix ??
I wish I could tell you more in detail. But this is how it happened. In 2000, my golf buddy in Oregon (I was living in Arkansas) said hey bring a blank check with you to the golf outing. I said why? He said...STFU and just bring it.
So when we met at the bar..he said, state or private school? I said definitely state. He said, by the time your daughter starts college in 2017, she will need $133,000 so, write me a check for $300.
And $150 went into CGFAX - growth fund of America and the other $150 went into CICAX Investment Company of America. Then we forgot about it.
Fall of 2017, she had $105,000 in the account. As I wrote checks every quarter and month for tuition and rent, the value kept going up. Then eventually, it started to decline... and March 2021 when she graduated, there was $30,000 remaining.
One of the best things I've done.
All because of Golf.
ORAggieFan said:
Utah
For those in Utah, what are you invested in? Selection page was a bit wonky.
Fidelity NH 500 Index for my kiddo. Second kid is on the way so I'm just going to double the contribution instead of opening a separate account.
My advisor doesn't invest this money, but recommend what to buy. Here is what we have:
Kids are in 6th and 4th.
- Vanguard Institutional Index: 48%
- Vanguard Mid Cap Index: 7%
- Vanguard Small Cap Index: 24%
- Vanguard Developed Markets: 8%
- Vanguard Emerging Markets: 13%
Kids are in 6th and 4th.
seems like overkill. why not just get the total world market and call it a day?
I'm not sure what is overkill, it took two minutes at most to allocate it.
I just don't see the upside and would have no desire to rebalance that portfolio.ORAggieFan said:
I'm not sure what is overkill, it took two minutes at most to allocate it.
They rebalance it for you.
Vanguard? I thought that was only with the robo-advisor feature. Is that automatic now?
In my vanguard 529 for our oldest we have three options which are something like conservative, moderate, and aggressive. Almost like one of their target retirement funds where they make all the decisions.Diggity said:
Vanguard? I thought that was only with the robo-advisor feature. Is that automatic now?
Edit: logged in to see specifics and looks like they closed out the aggressive growth one into one that's actually called a target enrollment 2034/2035 portfolio.
Investment mix is
48% vanguard tot stk mkt-ins sel
31% vanguard total international stock index fund
14% vanguard total bond market II institutional shares
6% vanguard total international bond index fund institutional shares 1
gotcha. we have the same. I thought you were doing your own allocation.GE said:In my vanguard 529 for our oldest we have three options which are something like conservative, moderate, and aggressive. Almost like one of their target retirement funds where they make all the decisions.Diggity said:
Vanguard? I thought that was only with the robo-advisor feature. Is that automatic now?
I'm looking at mine and just saw I was in some bonds
Vanguard Total Stock Market Index Fund 30%
Vanguard Total International Stock Index Fund 20%
Vanguard Total Bond Market II Index Fund 35%
Vanguard Total International Bond Index Fund 15%
I was editing mine as you posted. Either you selected a more conservative option or have older kids. Investments are identical just weighted different.
you're correct. I was set at "moderate". 50% bonds seems pretty darn conservative to me but I guess 10 years isn't a ton of time. In any case, I switched it to aggressive so I can assure you that the equity market will now tank.GE said:
I was editing mine as you posted. Either you selected a more conservative option or have older kids. Investments are identical just weighted different.
I have no idea, I just see it in my Transactions area.Diggity said:
Vanguard? I thought that was only with the robo-advisor feature. Is that automatic now?
Thanks! I'm in the growth fund you menu.
What is the advantage of doing this over just doing the SP500. I plan on just doing that until the first hits high school then reallocating to a bond/blue chip mixGE said:In my vanguard 529 for our oldest we have three options which are something like conservative, moderate, and aggressive. Almost like one of their target retirement funds where they make all the decisions.Diggity said:
Vanguard? I thought that was only with the robo-advisor feature. Is that automatic now?
Edit: logged in to see specifics and looks like they closed out the aggressive growth one into one that's actually called a target enrollment 2034/2035 portfolio.
Investment mix is
48% vanguard tot stk mkt-ins sel
31% vanguard total international stock index fund
14% vanguard total bond market II institutional shares
6% vanguard total international bond index fund institutional shares 1
Deplorable Neanderthal Clinger
Tax Free Growth (if spent on education expenses)…
No advantage, IMO.
All in with S&P Index for my kiddos.
All in with S&P Index for my kiddos.
I went with vanguard and chose their Target funds, made it easy
The advantage is just like the vanguard target retirement funds they rebalance it for you as your kid approaches college. All you do is tell them how aggressive you are willing to be and when the kid will start college.Sully Dog said:What is the advantage of doing this over just doing the SP500. I plan on just doing that until the first hits high school then reallocating to a bond/blue chip mixGE said:In my vanguard 529 for our oldest we have three options which are something like conservative, moderate, and aggressive. Almost like one of their target retirement funds where they make all the decisions.Diggity said:
Vanguard? I thought that was only with the robo-advisor feature. Is that automatic now?
Edit: logged in to see specifics and looks like they closed out the aggressive growth one into one that's actually called a target enrollment 2034/2035 portfolio.
Investment mix is
48% vanguard tot stk mkt-ins sel
31% vanguard total international stock index fund
14% vanguard total bond market II institutional shares
6% vanguard total international bond index fund institutional shares 1
Keeper of The Spirits
Joined:
Nov 12, 2008
Posts:
8,458
How long do you want to ignore this user?
AG
You can also use it for private elementary, middle and high school up to 10k a year. That doesn't go that far for some private high schools but it's something
As a retired FA I can tell you if you're living in Texas it makes absolutely no difference whether you set up a Utah plan or a Kentucky plan or any other state, the only thing that makes you any money is what you invest that money in. If you want American Funds you have to have an advisor and while they have low maintenance fees they do have sales charges on the front end. Growth Fund of America is historically one of the best funds in America though. The majority of people I saw wanting a 529 I directed to either Fidelity or Vanguard and told them to open the account themselves and pick an Index fund. The majority of people who invest on their own use these two firms for their funds anyway, why do differently for your kids? Mutual funds are your only 529 choices, no individual stock accounts allowed.
this might be a dumb question; but I'm having a hard time deciding between the 529 & the UGMA/UTMA accounts for my son. For background he is 5 years old. I am going to start it with a lump sum (30-50k).
What are yalls opinions on the 529 over the utma accounts? FTR I'm leaning towards the UGMA account simply for the freedom of use over the restrictions of the 529 plan.
What are yalls opinions on the 529 over the utma accounts? FTR I'm leaning towards the UGMA account simply for the freedom of use over the restrictions of the 529 plan.
Featured Stories
See All
3:03
16h ago
8.7k
Win streak reaches four as A&M never trails at Georgia, 92-77
by Olin Buchanan
35:23
1d ago
5.1k
15:01
1d ago
4.1k
56:56
1d ago
3.0k
Reed Report: Southeastern 16's Max Barr dives into A&M's SEC surge
by Luke Evangelist
Three Things: Where Texas A&M's 2026 class ranks nationally
by Jason Howell
Infection_Ag11
Props to Trev for being bold enough to make this hire
in Billy Liucci's TexAgs Premium
13