Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Best 529 plan in the nation?
Old 08-10-2013, 04:22 PM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2007
Posts: 7,526
Best 529 plan in the nation?

I currently have a 529 account (actually 3, 1 for each kid) with my own state's plan. Historically there has been a state tax deduction associates with contributions up to a large limit. Times being what they are, this state tax deduction appears to have disappeared going forward. Right now the 529 plan tacks on an extra 0.2 to 0.3% administrative fee on top of some very low expense ratios for vanguard fund offerings (institutional share class IIRC). So assume I'm paying around 0.30 to 0.35% expense ratio for my current 529 funds, with no extra fees.

From some quick research at savingforcollege.com, I have determined the NY State College Savings Program (Direct Investment) is the best nationwide plan that is open to residents of all states. They charge a flat 0.17% ER on a sufficiently diverse array of Vanguard funds (the 0.17% includes the underlying funds expense ratio). No other fees as far as I can tell.

Anything else out there that beats this plan? I saw South Carolina and Louisiana had competitive plans but they appear to be restricted to residents of the respective state.

For reference, I'll be dumping the investments into a Growth portfolio or something similar, and international investment options are a plus. Lifestrategy type funds (that do portfolio diversification for me) are totally acceptable. Approximate assets of $40000 divided between 3 accounts.

And yes, I am already maxing out IRA's, 401ks, 457s, HSA, etc. and have ample left over to put into taxable or 529.
__________________

__________________
Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (5, 11, and 12).
FUEGO is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-10-2013, 04:51 PM   #2
Thinks s/he gets paid by the post
Htown Harry's Avatar
 
Join Date: May 2007
Posts: 1,516
FWIW, here's a June comparison that suggests Utah is best for those living in states where deductability of contributions is not an issue:

The Best 529 in The Country Gets Even Better

__________________

__________________
No doubt a continuous prosperity, though spendthrift, is preferable to an economy thriftily moral, though lean. Nevertheless, that prosperity would seem more soundly shored if, by a saving grace, more of us had the grace to save.

Life Magazine editorial, 1956
Htown Harry is offline   Reply With Quote
Old 08-10-2013, 05:12 PM   #3
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,102
Quote:
Originally Posted by Htown Harry View Post
FWIW, here's a June comparison that suggests Utah is best for those living in states where deductability of contributions is not an issue:

The Best 529 in The Country Gets Even Better
+1

I'm using the Utah 529 plan for my two grandchildren who were born too late to qualify for the old Texas Tomorrow Plan.
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 08-10-2013, 05:44 PM   #4
Thinks s/he gets paid by the post
 
Join Date: Jul 2002
Posts: 1,038
While I haven't studied the fees in some years, when I established 529 plans for my boys Utah seemed best for low fees (Vanguard) and choices. I lived in AL at the time and the AL plan was terrible.

Now live in PA and you get a state tax deduction up to the federal gift tax exemption ($12,000??) and it doesn't matter what state's 529 plan you use.
__________________
RE2Boys is online now   Reply With Quote
Old 08-10-2013, 05:58 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2007
Posts: 7,526
Looks like the NY plan has pulled slightly ahead of the Utah plan generally. It appears Utah beats NY only in the FDIC insured savings option (0.16% for UT vs 0.17% for NYC). The global aggressive option is 0.215% at UT, 0.17% at NY, although in NY you have to hand mix the ingredients and manage over time. Maybe worth it to trim off 0.045% per year in ER.

Utah does offer a little broader investment options, so that may be worth the extra expense. If I was already at Utah, I probably wouldn't switch for the modest savings.
__________________
Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (5, 11, and 12).
FUEGO is offline   Reply With Quote
Old 08-10-2013, 06:51 PM   #6
Recycles dryer sheets
 
Join Date: Apr 2007
Posts: 354
We were NY state residents when we started our 529, and have just kept the money there. Have been happy with it, especially after they switched to Vanguard (used to be managed by TIAA-CREF). We'll probably just keep it there as it is easy and it is a good plan.
__________________
lhamo is offline   Reply With Quote
Old 08-12-2013, 01:48 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2007
Posts: 7,526
Quote:
Originally Posted by lhamo View Post
We were NY state residents when we started our 529, and have just kept the money there. Have been happy with it, especially after they switched to Vanguard (used to be managed by TIAA-CREF). We'll probably just keep it there as it is easy and it is a good plan.
I saw a blurb about Vanguard having the contract for NY 529 through 2019. Good news it sounds like. I am very glad to see some states getting competitive services like this.
__________________
Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (5, 11, and 12).
FUEGO is offline   Reply With Quote
Old 08-12-2013, 03:42 PM   #8
Thinks s/he gets paid by the post
Bikerdude's Avatar
 
Join Date: Jul 2006
Posts: 1,901
Quote:
Originally Posted by Htown Harry View Post
FWIW, here's a June comparison that suggests Utah is best for those living in states where deductability of contributions is not an issue:

The Best 529 in The Country Gets Even Better

I have 529's in CT and they are deductible on my State taxable income.
__________________
“I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said” Alan Greenspan
Bikerdude is offline   Reply With Quote
Old 08-12-2013, 04:29 PM   #9
Recycles dryer sheets
 
Join Date: Sep 2012
Posts: 406
I did my research in April and found NY state Direct to be best. I just made it simple and chose the age based option for my three kids.
__________________
retire2020 is offline   Reply With Quote
Old 08-12-2013, 09:59 PM   #10
Recycles dryer sheets
 
Join Date: Apr 2010
Posts: 269
I saw something recently which suggests that NY won't let you roll money out to another plan. I found it odd, but didn't dig deeper since my 529 is in Utah and the cost difference isn't much (as you pointed out).

EDIT - I dug deeper. It seems the rollover issue is only an issue for NY taxpayers.

Scroll down on these links:
http://www.savingforcollege.com/529_...ils&plan_id=37

http://www.osc.state.ny.us/college/saverfaq.htm
__________________

__________________
Sesq is offline   Reply With Quote
Reply

Tags
529 plans


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 01:24 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.