Anonymous
11/02/2023 09:52
Subject: Is there a better vehicle than 529 for college savings right now?
Anonymous wrote: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.
Most are managed fu ds so the Tax benefits are diminished. With ETFs the historical benefits are much reduced.
I have no idea what this is trying to say.
They are just a troll or ill-informed. The tax benefits are from growth without any taxes.
Anonymous
11/01/2023 21:51
Subject: Is there a better vehicle than 529 for college savings right now?
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.
Most are managed fu ds so the Tax benefits are diminished. With ETFs the historical benefits are much reduced.
I have no idea what this is trying to say.
Anonymous
11/01/2023 21:15
Subject: Is there a better vehicle than 529 for college savings right now?
We also like our DC 529 options and low fees and have chosen to invest a bunch now (“superfund”, about $200k, for our 4yo and then leave it untouched for a decade or so and check in on it.
Anonymous
11/01/2023 19:50
Subject: Is there a better vehicle than 529 for college savings right now?
Anonymous wrote:Anonymous wrote:Anonymous wrote: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).
This^^^. The Virginia American Funds 529 is one of the best out there, even if you don't live in VA. The investment choices are top notch and the fees are low. We used that for all of our kids and will continue with it for grandkids
A 529 you buy through a broker? When did that become a good idea?
I feel like we're dealing the realtors trying to pump up enthusiasm for bad houses in the Real Estate forum
You're firing from the hip, buddy. Take a couple seconds to do some research before engaging in baseless attacks. The Virginia 529 program offers index funds from American Funds. They have relatively low expense ratios and are offered through the Virginia 529 program. Now that we've set the stage, why don't you explain your beef? I'm guessing you can't, because you're just another ill informed mansplainer.
Anonymous
11/01/2023 17:35
Subject: Is there a better vehicle than 529 for college savings right now?
I have 529s but have them all in domestic stocks. I wouldn’t invest in target date funds.