Is there a better vehicle than 529 for college savings right now?

[Anonymous]

The kids have 529s that we contribute to monthly and I would like to increase the amount we are saving for their college.

Is it best to add the extra amount to the 529 or should I put it in another vehicle? Any pros or cons either way?

Kids are in 9th, 6th, and 3rd grades right now - and I could do CD or something else - don’t mind tying the money up for a longer time if that would give a good rate.

[Anonymous]

Anonymous wrote:The kids have 529s that we contribute to monthly and I would like to increase the amount we are saving for their college.

Is it best to add the extra amount to the 529 or should I put it in another vehicle? Any pros or cons either way?

Kids are in 9th, 6th, and 3rd grades right now - and I could do CD or something else - don’t mind tying the money up for a longer time if that would give a good rate.

I wish I knew. I've been underwhelmed with our 529 results the past couple years. We don't plan to fully fund the 529 and will pay some out of pocket or with our S&P index funds. I'm not convinced 529s are a good investment and I've been investing in them for a decade.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The kids have 529s that we contribute to monthly and I would like to increase the amount we are saving for their college.

Is it best to add the extra amount to the 529 or should I put it in another vehicle? Any pros or cons either way?

Kids are in 9th, 6th, and 3rd grades right now - and I could do CD or something else - don’t mind tying the money up for a longer time if that would give a good rate.

I wish I knew. I've been underwhelmed with our 529 results the past couple years. We don't plan to fully fund the 529 and will pay some out of pocket or with our S&P index funds. I'm not convinced 529s are a good investment and I've been investing in them for a decade.

Why not?

Pick a 529 that is aggressive if you want to earn more. The tax benefits are great.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The kids have 529s that we contribute to monthly and I would like to increase the amount we are saving for their college.

Is it best to add the extra amount to the 529 or should I put it in another vehicle? Any pros or cons either way?

Kids are in 9th, 6th, and 3rd grades right now - and I could do CD or something else - don’t mind tying the money up for a longer time if that would give a good rate.

I wish I knew. I've been underwhelmed with our 529 results the past couple years. We don't plan to fully fund the 529 and will pay some out of pocket or with our S&P index funds. I'm not convinced 529s are a good investment and I've been investing in them for a decade.

Why not?

Pick a 529 that is aggressive if you want to earn more. The tax benefits are great.

NP. What tax benefits?!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The kids have 529s that we contribute to monthly and I would like to increase the amount we are saving for their college.

Is it best to add the extra amount to the 529 or should I put it in another vehicle? Any pros or cons either way?

Kids are in 9th, 6th, and 3rd grades right now - and I could do CD or something else - don’t mind tying the money up for a longer time if that would give a good rate.

I wish I knew. I've been underwhelmed with our 529 results the past couple years. We don't plan to fully fund the 529 and will pay some out of pocket or with our S&P index funds. I'm not convinced 529s are a good investment and I've been investing in them for a decade.

Why not?

Pick a 529 that is aggressive if you want to earn more. The tax benefits are great.

NP. What tax benefits?!

The gains build up tax free and you don't pay capital gains when you withdraw as long as you use it for qualified expenses. It's an amazing tax benefit,

[Anonymous]

Our 529 offers a CD option. DS has 7 years until college and I've been using a target graduation date option but returns haven't been good mostly because bond funds have sucked instead of being a counter balance to stocks. I'm thinking of sticking half the money in a CD option and half in an S&P 500 index fund within the 529, then gradually shifting more of the money into CDs within the 529. Is this a bad idea?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The kids have 529s that we contribute to monthly and I would like to increase the amount we are saving for their college.

Is it best to add the extra amount to the 529 or should I put it in another vehicle? Any pros or cons either way?

Kids are in 9th, 6th, and 3rd grades right now - and I could do CD or something else - don’t mind tying the money up for a longer time if that would give a good rate.

I wish I knew. I've been underwhelmed with our 529 results the past couple years. We don't plan to fully fund the 529 and will pay some out of pocket or with our S&P index funds. I'm not convinced 529s are a good investment and I've been investing in them for a decade.

Why not?

Pick a 529 that is aggressive if you want to earn more. The tax benefits are great.

NP. What tax benefits?!

. It grows tax free. You never pay taxes on that growth if you use it for education

[Anonymous]

Roth or regular investment account.
I will never understand why people can't take some chances with $15k-$20k in growth stock when kids are young. Same people have no problem putting $50k-$100k into some lousy fund offered by 529 and claim tax advantage. Then take out a little more than the put in when considering inflation. Why not put it in a mattress.

[Anonymous]

Anonymous wrote:Roth or regular investment account.
I will never understand why people can't take some chances with $15k-$20k in growth stock when kids are young. Same people have no problem putting $50k-$100k into some lousy fund offered by 529 and claim tax advantage. Then take out a little more than the put in when considering inflation. Why not put it in a mattress.

We have had our 529s invested in growth stocks until our kids were close to college. You can easily have both options. Our 529s have had excellent returns. 3-4 years before college starts we begins to move a portion to less risky investments.

[Anonymous]

Anonymous wrote:Roth or regular investment account.
I will never understand why people can't take some chances with $15k-$20k in growth stock when kids are young. Same people have no problem putting $50k-$100k into some lousy fund offered by 529 and claim tax advantage. Then take out a little more than the put in when considering inflation. Why not put it in a mattress.

You're under selling 529s. The Virginia 529 offers a total stock market index fund with a 0.069 expense ratio. The tax deduction + tax free withdrawal readily beats using a brokerage account to buy VTI (with a 0.03 expense ratio).

[Anonymous]

OP again - ok so leaning towards 529, but do we think I should put in all 3 (divided evenly) or put all in oldest, and then switch to others later?

[Anonymous]

I would divide evenly

[Anonymous]

Anonymous wrote:Our 529 offers a CD option. DS has 7 years until college and I've been using a target graduation date option but returns haven't been good mostly because bond funds have sucked instead of being a counter balance to stocks. I'm thinking of sticking half the money in a CD option and half in an S&P 500 index fund within the 529, then gradually shifting more of the money into CDs within the 529. Is this a bad idea?

When my DD was 7, I was fully in stocks. The account doubled by the time they were college age. For anyone who is saying they are underwhelmed by the results of their 529, you need to adjust your investment choices. The target age funds are too conservative in my view.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The kids have 529s that we contribute to monthly and I would like to increase the amount we are saving for their college.

Is it best to add the extra amount to the 529 or should I put it in another vehicle? Any pros or cons either way?

Kids are in 9th, 6th, and 3rd grades right now - and I could do CD or something else - don’t mind tying the money up for a longer time if that would give a good rate.

I wish I knew. I've been underwhelmed with our 529 results the past couple years. We don't plan to fully fund the 529 and will pay some out of pocket or with our S&P index funds. I'm not convinced 529s are a good investment and I've been investing in them for a decade.

Why not?

Pick a 529 that is aggressive if you want to earn more. The tax benefits are great.

Most are managed fu ds so the Tax benefits are diminished. With ETFs the historical benefits are much reduced.

[Anonymous]

Anonymous wrote:Our 529 offers a CD option. DS has 7 years until college and I've been using a target graduation date option but returns haven't been good mostly because bond funds have sucked instead of being a counter balance to stocks. I'm thinking of sticking half the money in a CD option and half in an S&P 500 index fund within the 529, then gradually shifting more of the money into CDs within the 529. Is this a bad idea?

Not a bad idea. It's conservative and I might do something similar.