Reply to How much have you made in the stock market since 2020?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Roughly $900k, $1.2 grew to $2.1 excluding 529 returns which had a similar rate of return.[/quote]

So you’re an active investor? Explain in greater depth how such returns have been realized in your 529 plans. This is mathematically impossible even if 100% of your plan was invested in an S&P 500 index fund. Furthermore, if you dollar cost averaged into the market over time, as most people do, this is even more impossible. Finally, most 529 plans limit the number of portfolio transfers to prevent active trading between mutual funds. So, again, enlighten us. Of course you can’t; this is just another DCUM tall tale troll that is too stupid to even fabricate realistic scenarios. [/quote]

All 529s--we have three--are invested in Vanguard 500 Index Option. 1/1/20 balance was $290K and current balance is $491K. We made the decision to superfund in 2014/2015 and do not make monthly contributions. We also have access to one GI bill and will maximize the yellow ribbon program benefits. That's a 4 year ROI of 69.4% versus the previously market return of 72.9%. Not a troll. [/quote]

Cool. So you’re both stupid and lucky? You superfunded a plan in 2014 which means you’ve had it for some named beneficiary for 10 years. This further suggests you’re investing currently with an 8-year time horizon and you’ve decided that going 100% all-in on equities with that short of a time horizon is the way to go. Especially when the market is greatly overvalued and prone to substantial dropping in the near-term…clueless. Your luck will run out within a matter of months.

Oh, BTW, thanks for providing your numbers and proving irrefutably that you’re spinning a story. Somehow you’re invested in a 529 index fund that has beaten the very index in question despite your paying of management fees. [/quote]

DP: Nothing like digging in when you're shown to be wrong.   And for a 529 btw it's not like you need all the funds the moment kids turn 18--they will go to 4 years of school and many parents also plan to fund grad school or future grandkids through the 529.  Beneficiaries can be changed--jeez I know people who start 529s before they have kids.[/quote]

+1 We opened up VCSP 529 AND Rollover 529 plans in 2019 with our financial advisor. This has allowed us to make contributions to our state plan (VA), where we have 12 accounts and contribute $4K per account per year to get the maximum tax deduction. We superfund in February each year with part of DH’s bonus and then we initiate an in-kind transfer to our Rollover 529 a few months later. In the Rollover program we have access to pretty much any ETF or individual stock, so we’ve been able to make quite a bit more. Since 2019, we’ve contributed $288K. We’ve done well, as our current account balance is $916K. Probably can let it ride with no more contributions again and fully fund all our kids and grandkids college with it as it grows over the next 10-20 years. [/quote]

WTF is a Rollover 529 plan? That’s not a thing. [/quote]

I am curious about this as well? [b]What exactly is a “rollover 529”[/b]?  I understand you can roll funds from one 529 plan to another (I’ve done this), but PP seems to be referring to something else.

Also which plans allow you to invest directly in stock and ETFs?  I thought that wasn’t permitted by 529 plans by law. [/quote]

I think this is just inexact language by PP, referring to the separate 529 that they rollover into each year from their state 529 (for the state tax benefit).  It's just another 529, not a "Rollover 529".  We do the same thing each year- contribute up to the tax-advantaged max to the state 529 plan, then a few months later roll it over to our "real" 529 at Vanguard.  Note that you can only do a 529 rollover once every 12 months.

I don't think there are specific federal requirements about 529s having to be in mutual funds per se.  It's just that you have to be in a state plan, and most (all?) state plans have a proscribed set of options and they usually don't involve individual stocks or ETFs.  I checked the Vanguard (Nevada) options and they have a lot of choices of funds/indexes, maybe 30, but no stocks or ETFs.[/quote]

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