Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I was feeling negatively that we never started one and just did regular stock instead. 16 yo. Glad we did.

Why would you be glad to pay more taxes? And get the same returns?

Ours is invested in 529 in Mutual funds, but we have 15-20+ to select from. And it grew for 18+ years tax free.

Maybe glad isn't the right word. We were not able to even start one until our kid was older so we've made more in gains than taxes so it worked out. Not everyone has 18 years but that must be nice!

Everyone has 18 years, unless you adopt an older kid. When you decide to have a kid you know college is a likely path and that it costs $$$. So you plan and save.
So yes it's nice that we lived frugally in our 20s to be able to afford kids when we had them and then still lived below our means to save for the future

Can someone explain why Utah is the greatest? I do $2500 in md annually to max the state tax limit plus more in ny since it has lower fees than ny - is Utah even cheaper fees? I'm about to start my 2nd kid's 529 and wondering if I should copy internet strangers and choose utah...

Anonymous wrote:

Anonymous wrote:Anybody else devastated that the 529 they put so much hope in has yielded 3-3.5% over 10 years?

Until the last 4-5 months, you should have been getting 10-15% returns. What was it invested in?

This is likely why you do NOT select the Target date, but instead keep more in stocks until about 3-4 years before college starts, then start putting it into more conservative/cash alternatives/Bonds

This is the return you should have been getting. And this is the way to do it.

Anonymous wrote:

Anonymous wrote:I just took a look at my high school junior's account, which we funded 7 years ago in full. It has grown at an average rate of 5.3%. Not bad in my opinion considering we went pretty conservative...especially in the last few years.

And you should be conservative in the last few years before college---the last 6 months tells you exactly why that is the case.

Sure -- if that is your only source of funding. If there is another source like investments, savings, cash flow -- you stay agressive.

Anonymous wrote:My kids' YTD return is poor (but I shifted to a less risky allocation once the 529 balance hit my target, so it's only down 1.2% YTD), but the overall return over ten years is stellar. I just pulled it up, and that account has $ 123k in earnings, which isn't that much less than the amount in principal. I use Utah and have it in a custom static allocation and use vanguard funds.

+1. I opted for Utah over DC's plan 13 years ago and have been very happy with its performance and low fees.

OP, I just checked this morning, 529 Virginia investment, 100% in total stock market. I started 2016 - 10 years ago with 8k every year in January. Gain total 78% for 10 years. I don’t plan to move to safer investment because I am allowed to change it 2 times every calendar year. I don’t think that I can time the market. I have 2 more years, but at that time the market is bad, we don’t use it & pay as we go from salary for college. Maybe we will use it to covert to Roth in the future? We also get back about from Virginia tax $450 for every 8k per kid. We invest the best we know how.

Anonymous wrote:I'm "down" $6k on a $260k 529 portfolio. No complaints!

Yeah because you've been "up" over 20% the prior 3 years

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I was feeling negatively that we never started one and just did regular stock instead. 16 yo. Glad we did.

Why would you be glad to pay more taxes? And get the same returns?

Ours is invested in 529 in Mutual funds, but we have 15-20+ to select from. And it grew for 18+ years tax free.

Maybe glad isn't the right word. We were not able to even start one until our kid was older so we've made more in gains than taxes so it worked out. Not everyone has 18 years but that must be nice!

Everyone has 18 years, unless you adopt an older kid. When you decide to have a kid you know college is a likely path and that it costs $$$. So you plan and save.
So yes it's nice that we lived frugally in our 20s to be able to afford kids when we had them and then still lived below our means to save for the future