Getting ready to start a 529 for my daughter, and wanted to see if anyone had any specific advice or experience to share. Just looking for anything that I may need to know that isn't necessarily "well known" in the process. 

TIA. 

8 hours ago, TheDeuce said:

Getting ready to start a 529 for my daughter, and wanted to see if anyone had any specific advice or experience to share. Just looking for anything that I may need to know that isn't necessarily "well known" in the process. 

TIA. 

I thought you worked in the financial field.

18 minutes ago, 4 Quarters said:

I thought you worked in the financial field.

Technically yes, but not in investments. 

10 hours ago, TheDeuce said:

Getting ready to start a 529 for my daughter, and wanted to see if anyone had any specific advice or experience to share. Just looking for anything that I may need to know that isn't necessarily "well known" in the process. 

TIA. 

Look at 529 vs Roth IRA. 

The biggest advantage for a 529 is ability for large contributions and multiple parties can contribute. If that is not going to happen, advantages in a number of ways swing to Roth.

33 minutes ago, Voice of Reason said:

Look at 529 vs Roth IRA. 

The biggest advantage for a 529 is ability for large contributions and multiple parties can contribute. If that is not going to happen, advantages in a number of ways swing to Roth.

We’ve had several people interested in giving, so that’s why we initially leaned 529.

1 hour ago, TheDeuce said:

We’ve had several people interested in giving, so that’s why we initially leaned 529.

Go to the state websites and all the information you need should be there. You do not have to use the KY site. Every state sets up their own program and provider. You can live in KY, use the MA 529 and your child can go to school in any state.

11 hours ago, Voice of Reason said:

Go to the state websites and all the information you need should be there. You do not have to use the KY site. Every state sets up their own program and provider. You can live in KY, use the MA 529 and your child can go to school in any state.

This.  I don't know what tax breaks or incentives Kentucky offers if you invest in their plan, but it's worth checking.  Most states give a reduction or a credit.

We used a Coverdell for our daughter, who is getting ready to graduate.  When we started it, we weren't able to invest more than $2k per year and I liked the greater control it provided vs. the 529.  But if you've got people wanting to chip in, 529 is the way to go in my opinion.

On 4/5/2023 at 9:50 PM, TheDeuce said:

We’ve had several people interested in giving, so that’s why we initially leaned 529.

Big fan of the 529s for this reason. We have grandparents who like to add to the 529s for special occasions and you can just send them a "giving link" and it is done. I researched a lot of different states to see which had the most consistent returns (you do not have to go to school in that state - I think some people think you have to do the state you live in). We ended up going with Arkansas by T. Rowe Price. Below is a link that ranks each state and some unaffiliated 529s and let's you compare them side by side that you might have helpful. 

https://www.forbes.com/advisor/student-loans/best-529-plans/

The Wall Street Journal recently had a very informative 529 article - article date was 5/2.  It was withdrawal advice more so than general information, but still good info.  The link below is unlocked and hopefully will work.  

https://www.wsj.com/articles/withdraw-from-529-college-saving-plan-8f217b6a?st=vb1rmos4nyhvd4x&reflink=desktopwebshare_permalink

 

On 4/6/2023 at 11:10 AM, Randy Parker said:

This.  I don't know what tax breaks or incentives Kentucky offers if you invest in their plan, but it's worth checking.  Most states give a reduction or a credit.

We used a Coverdell for our daughter, who is getting ready to graduate.  When we started it, we weren't able to invest more than $2k per year and I liked the greater control it provided vs. the 529.  But if you've got people wanting to chip in, 529 is the way to go in my opinion.

I figured you’d tell Deuce to invest in pork bellies or orange juice concentrate. 

Check out the state of Virginia's 529, if you're reviewing your best options.  

On 5/9/2023 at 9:29 AM, Rocks and Cards said:

The Wall Street Journal recently had a very informative 529 article - article date was 5/2.  It was withdrawal advice more so than general information, but still good info.  The link below is unlocked and hopefully will work.  

https://www.wsj.com/articles/withdraw-from-529-college-saving-plan-8f217b6a?st=vb1rmos4nyhvd4x&reflink=desktopwebshare_permalink

 

Ha....that specifically talks about Virginia's.  Funny, given my above post before reading this.