One of the blessings of FIRE

[Dash man]

Found out today I'm going to be a grandfather for the first time around middle March. I feel so blessed and am so happy I'll be able to help them along with some financial help. They live in New Mexico and I'm in Pennsylvania. I guess a lot of my vacation plans just got changed. But I want to set up a college fund first. Any suggestions?


Enjoying life!

 

[Souschef]

I set up 529 plans for my grandchildren

 

[cj1717]

Ditto. Research the various state's programs online. They vary greatly. I went with NY

 

[Dash man]

I had a PA 529 for my son and it was terrible. I hope there are better ones out there.


Enjoying life!

 

[Moemg]

Congratulations ! Being a grandparent is the best .

 

[Dash man]

Thanks! We're really excited!
It looks to me like Utah has one of the highest rated 529 plans and use Vanguard funds. Has anyone used the Utah plan before? Can a 529 be opened before the birth or do I have to wait until the baby has a social security number to be listed as a beneficiary? I'm just thinking we're heading into a downturn in the market and investing this fall may be a good time.


Enjoying life!

 

[RE2Boys]

The Internet Guide to Funding College and Section 529 College Savings Plans. Savingforcollege.com is a great website for researching 529 plans.

And yes, you can open a 529 plan prior to birth, but you will need to designate someone else as the beneficiary and then change the beneficiary once child is born.

As a PA resident, any money you put into a 529 plan is deductible on your PA state tax return, not to exceed the federal gift exclusion and not to exceed your reported PA taxable income. Each spouse is treated as a separate person regarding these limits. Doesn't matter what state sponsors the plan.

I live in PA but used the Utah plan for last 14 years but recently transferred the funds to the Colorado Stable Value 529 plan as one is currently in college, the other boy is a year away.

 

[Want2rv]

Our son, who lives is Texas, opened a Utah 529 plan almost 5 years ago when our grandson was born. He did a lot of research for what he felt was the best plan for their circumstances. He set it up after our grandson's birth. We contributed the initial funding and do deposits for birthdays and Christmas. He has been happy with the account. I hope that helps you.

 

[Dash man]

Our son, who lives is Texas, opened a Utah 529 plan almost 5 years ago when our grandson was born. He did a lot of research for what he felt was the best plan for their circumstances. He set it up after our grandson's birth. We contributed the initial funding and do deposits for birthdays and Christmas. He has been happy with the account. I hope that helps you.

Yes, The Utah plan seems to be the way to go. I'll do a more thorough due diligence on them, but with this apparent market downturn a good time to invest may be here soon.


Enjoying life!