Subscribe: Comments on: The Very Best 529 Plans?
http://www.fivecentnickel.com/2007/07/24/the-very-best-529-plans/feed/
Added By: Feedage Forager Feedage Grade B rated
Language: English
Tags:
anonymous  card  don  fees  funds  income tax  money  nevada  ohio  plan  plans  state income  state  tax  upromise  vanguard 
Rate this Feed
Rate this feedRate this feedRate this feedRate this feedRate this feed
Rate this feed 1 starRate this feed 2 starRate this feed 3 starRate this feed 4 starRate this feed 5 star

Comments (0)

Feed Details and Statistics Feed Statistics
Preview: Comments on: The Very Best 529 Plans?

Comments on: The Very Best 529 Plans?



Personal finance tips, tricks, and commentary



Last Build Date: Sat, 27 Jan 2018 01:21:31 +0000

 



By: Anonymous

Fri, 03 Apr 2009 16:40:39 +0000

I presently have a John Hancock 529 plan through Alaska. Everytime I invest it costs me 5%. I asked my financial advisor about this and she said we are paying all of the fees associated with removing the money upfront? Is this true? All the information I have read indicates a managed plan under 1% in fees. Am I getting ripped off?



By: Anonymous

Mon, 30 Jul 2007 17:45:51 +0000

I love the Iowa plan ... the Vanguard fund choices are great and the options for investing are pretty good. The plan is inexpensive compared to others. I live in a state without a state income tax so that wasn't an issue for me. Don't forget to sign up for Upromise and link it to your 529. It is painless. I have linked my gas card, my grocery card and my credit cards to it. I don't try very hard and even without remembering to shop through them when I shop online, I have managed to get over $100 in free money for my son's 529 ... no brainer.



By: Anonymous

Mon, 30 Jul 2007 13:39:57 +0000

I'm Ohio's. I looked at almost all the plans this spring and Ohio's had the lowest fees for investing in Vanguard Index funds.



By: Anonymous

Sat, 28 Jul 2007 17:49:37 +0000

We have a lot of money with USAA and we aren't going with it. Ohio has all the things we are looking for.



By: Anonymous

Thu, 26 Jul 2007 18:29:44 +0000

You might check out the Iowa plan, which is another Vanguard/Upromise offering. Total feel are .62% with no additional flat amount, and good selection of funds. I figure the cross-over point on fees as compared to Nevada is between $4000-$8300, depending on which funds you are invested it. Obviously, if you intend to reach higher amounts in the fund, then Nevada is a better option.



By: Anonymous

Wed, 25 Jul 2007 18:57:55 +0000

NOW I can put a full vote in for Dimensional! You can access Dimensional Funds w/o the usual up-front fees via WV's 529. Better diversification than possible via Vanguard: http://www.fundadvice.com/articles/buy-hold/the-best-mutual-fund-dfa-or-vanguard-.html My good bud Joe Hurley rates 'em a 4-cap, a rare rating (the highest non-resident rating is 4.5 caps, which, if I am not mistaken, only three plans achieve: MD, SC, and MN. http://www.savingforcollege.com/5_cap_ratings/ If you want to out-Bogle Vanguard and join the DFA cult, this is one of the best opportunities.



By: Anonymous

Wed, 25 Jul 2007 13:17:26 +0000

MITBeta: I would look at UPromise first, since in addition to being able to get a credit card for "points" (actually real money), you can maximize by shopping online or even locally with UPromise merchants and products. Sign up your shopper cards at the grocery, too, and you may even be able to "triple" dip! I personally don't use the credit card, as I use another for points for vacations and such, but you can register existing credit cards and earn cash by shopping at particular merchants online (almost everyone except Amazon). We have been averaging about 200-300 dollars per year in "free" money for our kids 529 plans. You can have your friends and family sign up as well and contribute to your kids funds.



By: Anonymous

Wed, 25 Jul 2007 13:11:54 +0000

Nickel: Definite food for thought on the Nevada plan. That'll learn me to blindly go with a "brand"! :-) Thanks, John



By: Anonymous

Wed, 25 Jul 2007 12:53:14 +0000

The Only Investment Guide You'll Ever Need by Tobias recommends the Nevada plan but suggests that once per year you should look around and see if there is a better plan and then move your money if necessary. He recommends this website for evaluating the differences between the plans. SavingForCollege.com I would love to open a 529 plan for my new daughter, but don't feel that I will be able to contribute much to it at this point since my priority is retirement. I like the idea of getting a credit card and connecting the cash back to the 529. I've heard of Upromise and I know Fidelity has one also. I want to pay EVERYTHING every month (incl. mortgage, etc.) so that I get the most points. Any thoughts on this portion of the equation?



By: Anonymous

Wed, 25 Jul 2007 02:47:36 +0000

I think its more important to find the right 529 based on the Tax code of your state rather than seeking only performance ranking or fee schedules.. For example, Oklahoma offers a tax deduction on contributions made into their plan up to a limit. Thus, a normal earner can save 7% as a tax deduction on State taxes for contributions made. And, if you don't use the plan sponsored by your state in an income tax state, you've got to pay state income tax on distributions. If you are like me, you don't have state income tax and you want features and benefits that work well for you. I use a plan offered by the largest mutual fund family.. and, while performance has been average, there is a credit card which credits 2% of purchases to the 529 account. I have 2 cards and am able to get $3,000 into my plans each year... just by using the cards to pay everything I can... What a deal... Merchants paying for my kid's school. So don't believe all the studys you read. Statistics can be twisted to prove any case you want to make.



By: Anonymous

Wed, 25 Jul 2007 01:38:06 +0000

I'll pile on with those who suggested Ohio's plan. I just happened to check it out today because I'm contemplating a move to Ohio to take advantage of lower cost of living there generally (I live near DC now). This page explains their fees. http://www.collegeadvantage.com/cms.aspx?SectionID=39 If I understand this correctly, it actually looks much better than Utah's plan. I like that the Age-based Vanguard plans have 3 different levels of aggressiveness to cater to differing appetites for risk. I wish my 401(k) offered something like that for retirement. They also have static plans from Vanguard.



By: Anonymous

Tue, 24 Jul 2007 21:37:44 +0000

If I can provide any additional information on the Illinois plan, please let me know. Oppenheimer sent out the details of the plan changes a week or two ago.



By: Anonymous

Tue, 24 Jul 2007 21:21:51 +0000

Try Ohio's 529 plan collegeadvantage.com S&P Index - 0.23 Total Bond Market Index - 0.33 Developed Mkts Index - .41 No other fees. They also have low minimum ($15) This plan is cheaper than Utah especially for smaller balances. The fees have been going down the last couple of years For Eg. S&P Index was .35 two years ago



By: Nickel

Tue, 24 Jul 2007 20:26:39 +0000

John: My main problem with the Nevada Upromise plan is that the expenses are roughly double those of Utah (and even more relative to the new Illinois plan). Also note that you can connect Upromise to other 529 plans, as well (not all of them, but quite a few). Moreover, you can get your funds out of Upromise by requesting a check. You can then deposit it in whatever 529 you want (or spend it, or whatever).



By: Anonymous

Tue, 24 Jul 2007 20:15:05 +0000

We use the UPromise 529 plan, which I believe is through Nevada and utilizes Vanguard funds. A nice benefit is that you can automatically transfer any UPromise earnings directly into the plan.



By: Anonymous

Tue, 24 Jul 2007 20:07:52 +0000

Just as a note, effective July 1st, 2007 the fees lowered on the Utah Educational Savings Plan. The maintenance fee has been reduced from a maximum of $25 to a maximum of $20, charged at a rate for $4 per $1,000.



By: Anonymous

Tue, 24 Jul 2007 18:36:55 +0000

I was going to mention the changes to the Illinois plan as I had just posted about the new plan on Saturday. Being previously invested in the Illinois Bright Start program, I'm really looking forward to these changes as I am a big fan of Vanguard and like the new investment options and the lower expenses.



By: Anonymous

Tue, 24 Jul 2007 18:27:56 +0000

Ohio has a low cost plan and is also Vanguard. I currently use NYâ€(image) s Vanguard/Upromise (55 bps) plan with a 50% allocation to age-based and 50% in a static portfolio to keep the overall allocation a little more consistent over the years than using age based alone.



By: Anonymous

Tue, 24 Jul 2007 18:23:03 +0000

Nickel, This month's issue of Money Magazine has a list of 70 of the 85 529 plans, as well as which ones are better on a state level or a national level. George was awarded with a state level star, while California, Iowa, Michigan, Nevada and Utah all got the national nod. If you get a copy or are browsing your local newstand, the charts are on pages 131-132.



By: Nickel

Tue, 24 Jul 2007 18:21:17 +0000

It looks like they have (or at least had) one through Nevada (though I know Nevada also offer a Vanguard 529). Looks a little pricey with portfolio expense ratios in the 0.65-0.94% range. Click here for details. Here's their assessment of the funds: "The underlying funds themselves, which in the case of the equity options USAA subadvises out to other managers, are decent though not great."



By: Anonymous

Tue, 24 Jul 2007 18:16:08 +0000

Well, if a private university is a possibility, look into the TIAA-CREF Independent 529 Plan. There are 250 member universities, and they cover the administrative fees. It is a pre-paid tuition plan that offers a 1% discount off of prices based on current tuition rates.



By: Anonymous

Tue, 24 Jul 2007 18:05:42 +0000

I'll be opening a 529 soon, and I've been tempted to go with USAA. Mainly because my Roth IRA, auto insurance, and renter's insurance are already through them. Any thoughts on if USAA offers a good 529 plan?