Reply to How many here do not have a 529 savings account, on purpose?

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[quote=Anonymous][quote=Anonymous]Between the NY state tax break and tax-free growth, I didn't see a better option for us. I suppose if we were genius investors who had gotten into crypto 10 years ago or something, but we aren't those people.[/quote]

Same here. I think this whole discussion is pointless unless people recognize the differences in different states.

In NY you can put in $10k a year that is exempt from state and local taxes. I live in NYC so my state and local taxes are about 10%. So I am saving $1k a year in taxes on my $10k contribution, or an immediate 10% ROI. Plus tax-exempt growth. Plus decent investment options. If you can afford to put away money and live in NY (particularly NYC), it is criminal not to at least do $10k a year. I don't care how good of an investor you think you are or how great you think your favorite stock is. This is tough to consistently beat (I'm sure some Bill Ackman wanna be will tell me stocks that have done better - ok, whatever).

For other states, or to fund beyond the limit where you get the up front tax benefit, the math is different. If you are getting no up front tax benefit then the argument is less compelling, though the tax free growth is still nice.

Note that I am also one who likes to keep things simple to minimize administrative hassle but there is almost no incremental effort here.[/quote]

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