College Savings plans for a new addition.

[CFIT99]

Hey JC, in a few months my wife will give birth to our first child! In hopes of being a good parent anyone have any advice for 529-esque saving plans.
I live in Dallas but am curious about how those savings account are effected by moving out of state. OR should I go with a more traditional savings plan.

Besides googling I'm not sure where to start, Let's here your thoughts!

 

[jhugz]

I did the UESP...Utah Educational Savings Plan...now my529.

My reasoning was it could be used if i move and they invest in cool stuff from developing markets when they're younger.

I've been happy so far with it... @CFIT99

 

[CFIT99]

thanks for the response!

 

[Flyinthrew]

I'm in the Georgia 529. There are 100 websites that rank all the plans on several different metrics. GA consistently fell out in the top 5 or so, and it's my home state even though I am not currently a resident. We may go back, and be able to get state tax breaks there. I'd say go with the 529 that makes sense to you. You can start by looking at the states that you may end up in because you will often get good STATE tax breaks with 529s, but the federal tax treatment is all exactly the same.

With that said, I personally think that 529 management is WAY too conservative across the board. Many barely outpace inflation (and certainly haven't outpaced recent tuition "inflation"). But it's not like retirement money. It's not a need and at the end of the day college can be financed if worse comes to worst. If you only plan to invest no more than $2000 per year and want to get more aggressive with it, then an ESA makes a lot of sense simply because you can manage it yourself. Just something to think about.

 

[CFIT99]

@Flyinthrew thanks!

 

[pnwchief22]

I was a state government employee, when Washington GET was first offered by the higher education folks, we purchased two contracts for my 2 kids. Tuition increased in our public colleges and we received pre paid credits that by law kept pace, so when the kids chose state universities after high school, every credit was paid from the GET value. It was something like 118% return over 19 years. We now have a grandchild and contribute to a new 529 program through Fidelity

 

[Cherokee_Cruiser]

I’ve been in NJBest 529 for New Jersey and am not impressed. Since Jan 2014 I have put in 30k and today it’s 35k. Meh. I’m moving to CA and looking to do the once-a-year free roll to another state’s 529 plan.

 

[Beaker]

Check out the vanguard 529 plan. It’s based in Nevada, but you don’t need to be in Nevada to use it. It gives you access to low cost vanguard funds, which I like. I found the fees to be much lower than the Texas based plan.

State tax breaks are not a concern for Texas residents since we do not have income tax.

 

[deadstick]

Check out the vanguard 529 plan. It’s based in Nevada, but you don’t need to be in Nevada to use it. It gives you access to low cost vanguard funds, which I like. I found the fees to be much lower than the Texas based plan.

State tax breaks are not a concern for Texas residents since we do not have income tax.

This is what we’ve used for 15 yrs...even started them before our kids were on the way. Some states even have a 529 tax deduction. The Vanguard program is good because of the low cost and good performance. Also, it works like a targeted retirement IRA in that you pick a year the kid is going to school (as opposed to retiring) and the system adjusts the risk (you set what you’re comfortable with) to more conservative funds as that date approaches.

It’s caveman easy.

 

[DWhite750]

Financial advisory is good start. 529 plan is best for college since it will grow tax free and can be rolled down to the next child if it not used.

 

[AAPalmTree]

Financial advisory is good start. 529 plan is best for college since it will grow tax free and can be rolled down to the next child if it not used.

@CFIT99 This. Talk to a pro. We have a generic 529 with CTLAX and CGPAX funds and are very happy.

 

[CFIT99]

@AAPalmTree yup, my wife and I talked with a Financial Advisor, thanks for everyone's input!

 

[Cherokee_Cruiser]

Financial advisory is good start. 529 plan is best for college since it will grow tax free and can be rolled down to the next child if it not used.

Another thing Trump gave us no one talks about, the ability to use 529 money for private elementary and secondary school.