We use VA. We initially put in $20k. Now we put in $75/month. It tanked in the recession, basically down to where we had started (after 6 years of $75/month). Now it is slowly creeping back up.

We haven't started one for DD#2 yet. She's 3.5 yrs old. DH has been stalling b/c he's concerned that the market volatility will continue.

Grandparents also started one for each of their grandchildren, with an initial investment of $4000. We haven't added to those ones.

I think we won't do much for the next couple years, until both kids are in school and then we will reassess where we are.

The MD 529 Plan is also one of the top rated plans (investment performance and low fees) and is run by T. Rowe Price. If you reside in VA or MD it is worthwhile to contribute up to the tax deductible amounts in the plan where you reside.

Grandparents can also set-up accounts for grandchildren in the state they reside and receive a tax deduction for their contributions. But, they will not receive a tax deduction for contributing to a plan that the parents have set-up.

Anonymous wrote:Does anyone use the MD 529?

Yes, the fees are higher than they should be but it is not a bad program once you factor in the tax break.

I put the minimum in DC needed to get the tax break and then some in the Ohio plan, which also has low fees.

VA's 529 plan, the Virginia Education Savings Trust (VEST), is always one of the top rated plans based on investment returns and low fees. As a VA resident you will receive a state tax deduction for contributions up to 4k per account. You can set up the accounts and fund them electronically online. The aged based investment options are based on your child's age and years until they will be expected to withdraw the funds for college. The investments will automatically adjust over time from a more aggressive higher stock investment allocation to a more conservative allocation as they get closer to college age. So you don't have to reallocate the accounts on an annual basis.

I work for a financial firm and we ran the numbers just recently for a newborn who is expected to go to a state school (current tuition of 17k/yr). We inflated the current tuition cost by 6% and assumed an investment teturn of 8%. Based on these assumptions the $ amount needed by the time they enter college is $230,000. To reach this goal the parents will need to contribute $400/month until the age of 18.

You can use the VA 529 plan funds for out of state schools and some international schools as well but the tuition will most likely be significantly higher.

We use MD 529. We are MD residents and can get a tax-deduction of up to $2,500 per taxpayer. We are contributing $25 / month to each account (both DH and I have an account for our kid) through an automatic draft and then make 2 lump sum contributions of $1,100 each year to take us to $2,500 (*2, of course).

My parents set up one for the kids through Nevada.

Does anyone use the MD 529?

OP, where do you live? You need to consider any tax breaks you may receive in your state for using their plan.

We use the VA VEST 529 and have been pretty pleased so far.

Utah and VA

We also have the VA 529 plan. It is really quite good - my husband researched them exhaustively before we selected one. Right now, we put in $25 a month (minimum required) and we have some family and friends who put in some additional money for the kids' birthdays and other holidays.

The older one will be in public school next year. At that point, we plan to put most of the money we currently spend on his daycare into his 529 each month.

We use Utah's 529 plan. We opened it on our own without a financial advisor. It is always highly ranked with very low investment fees.

We opened a VA 529 plan when we lived in AZ and then moved to NoVA. Our financial advisor said the VA one was good. We have contributed very little in the last 2 years, probably $300 total mostly from grandparents. If I had a goal I'd say $100 a month.

We just signed up for DC's 529, and put in 500 per month. We have an 18-month old.

I should add that we live in VA. We just moved from NY last year. NY state had one I was looking into but then we moved.

We have a 3yo and 1yo and this has been on my list for a while. I would like to open their accounts this month.

Can you recommend your plan?