Funding 2 529 plans @ Updated@

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B-rad
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Joined: Tue Sep 28, 2021 3:57 am

Funding 2 529 plans @ Updated@

Post by B-rad »

Hello, we are going to lump sum 2 529 plans for our daughters. Ages 3 and 6 with $10k a piece. I think they are way too young for bonds in it. We're going through Fidelity . Which funds would you suggest. Their freedom funds are too bond heavy in my opinion with an expensive er . Thoughts/ opinions?


Update. I have done some research today after advice here . It appears the 529 may not be the best choice for me because I live in a state ( TX) that gives no tax benefits . Looks like funding a HSA may be a better option for me . Would this be a good assumption?
Last edited by B-rad on Tue Oct 26, 2021 8:34 pm, edited 1 time in total.
pizzy
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Re: Funding 2 529 plans

Post by pizzy »

Aggressive Growth Portfolio (Fidelity Index Funds)

https://www.fidelity.com/529-plans/investment-options
Vanguard/Fidelity | 76% US Stock | 16% Int'l Stock | 8% Cash
Topic Author
B-rad
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Re: Funding 2 529 plans

Post by B-rad »

pizzy wrote: Tue Oct 26, 2021 9:07 am Aggressive Growth Portfolio (Fidelity Index Funds)

https://www.fidelity.com/529-plans/investment-options
This er is almost 1%
pizzy
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Re: Funding 2 529 plans

Post by pizzy »

B-rad wrote: Tue Oct 26, 2021 9:17 am
pizzy wrote: Tue Oct 26, 2021 9:07 am Aggressive Growth Portfolio (Fidelity Index Funds)

https://www.fidelity.com/529-plans/investment-options
This er is almost 1%
You aren't looking at the index version.

https://fundresearch.fidelity.com/mutua ... ppcode=529
Vanguard/Fidelity | 76% US Stock | 16% Int'l Stock | 8% Cash
TallBoy29er
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Re: Funding 2 529 plans

Post by TallBoy29er »

Are you going to contribute to a state fund at Fidelity, or their national plan?
Topic Author
B-rad
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Re: Funding 2 529 plans

Post by B-rad »

TallBoy29er wrote: Tue Oct 26, 2021 9:25 am Are you going to contribute to a state fund at Fidelity, or their national plan?
I will have to see what they provide for TX.
TallBoy29er
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Re: Funding 2 529 plans

Post by TallBoy29er »

B-rad wrote: Tue Oct 26, 2021 9:43 am
TallBoy29er wrote: Tue Oct 26, 2021 9:25 am Are you going to contribute to a state fund at Fidelity, or their national plan?
I will have to see what they provide for TX.
So Texas is not an offering through Fidelity, you would need to go directly to the Texas 529 site to invest in your state's 529, and therefore get the tax deduction.

That said, Texas's plan looks pretty horrible compared to other plans. Their fund expenses for age based options range from 0.56% to 0.977% :shock:

Clark Howard's assessment is that Texas's 529 is not worth investing in even for the tax deduction, due to the high fees. View Here.

All that to say, going through Fido for a different state's plan, or their national plan, may not be a bad option (I did not look at their fees).
Topic Author
B-rad
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Re: Funding 2 529 plans

Post by B-rad »

TallBoy29er wrote: Tue Oct 26, 2021 10:12 am
B-rad wrote: Tue Oct 26, 2021 9:43 am
TallBoy29er wrote: Tue Oct 26, 2021 9:25 am Are you going to contribute to a state fund at Fidelity, or their national plan?
I will have to see what they provide for TX.
So Texas is not an offering through Fidelity, you would need to go directly to the Texas 529 site to invest in your state's 529, and therefore get the tax deduction.

That said, Texas's plan looks pretty horrible compared to other plans. Their fund expenses for age based options range from 0.56% to 0.977% :shock:

Clark Howard's assessment is that Texas's 529 is not worth investing in even for the tax deduction, due to the high fees. View Here.

All that to say, going through Fido for a different state's plan, or their national plan, may not be a bad option (I did not look at their fees).

Thank you for that. I guess I will compare NH 529 VS Fidelity national
fabdog
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Re: Funding 2 529 plans

Post by fabdog »

So Texas is not an offering through Fidelity, you would need to go directly to the Texas 529 site to invest in your state's 529, and therefore get the tax deduction.

That said, Texas's plan looks pretty horrible compared to other plans. Their fund expenses for age based options range from 0.56% to 0.977%
Texas has no state income tax, therefore no state tax deduction for 529 contribution.

OP can pick from most competitive plans nationwide

Mike
Topic Author
B-rad
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Re: Funding 2 529 plans

Post by B-rad »

fabdog wrote: Tue Oct 26, 2021 11:27 am
So Texas is not an offering through Fidelity, you would need to go directly to the Texas 529 site to invest in your state's 529, and therefore get the tax deduction.

That said, Texas's plan looks pretty horrible compared to other plans. Their fund expenses for age based options range from 0.56% to 0.977%
Texas has no state income tax, therefore no state tax deduction for 529 contribution.

OP can pick from most competitive plans nationwide

Mike
Thank you, do you have any recommendations? I'm going to look at the NH one . I can't find much info on the fidelity " national" . Il look more when I get by a computer
TallBoy29er
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Re: Funding 2 529 plans

Post by TallBoy29er »

Check out those on the Dean's List from the Clark Howard link I included. Those typically are a gold place to start for low fees. I use Utah (very low fees), but there are other good state plans as well.

Good call out about no TX state income tax.
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FoundingFather
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Re: Funding 2 529 plans

Post by FoundingFather »

B-rad wrote: Tue Oct 26, 2021 12:13 pm Thank you, do you have any recommendations? I'm going to look at the NH one . I can't find much info on the fidelity " national" . Il look more when I get by a computer
I use Utah's 529 as well, and have been happy with both the interface/ease of use and the low fees. There are many good options, however, so feel free to explore before committing.

Founding Father
"I do not think myself equal to the Command I am honored with." -George Washington (excerpt from Journals of the Continental Congress, 16 June 1775)
pizzy
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Re: Funding 2 529 plans

Post by pizzy »

B-rad wrote: Tue Oct 26, 2021 12:13 pm
fabdog wrote: Tue Oct 26, 2021 11:27 am
So Texas is not an offering through Fidelity, you would need to go directly to the Texas 529 site to invest in your state's 529, and therefore get the tax deduction.

That said, Texas's plan looks pretty horrible compared to other plans. Their fund expenses for age based options range from 0.56% to 0.977%
Texas has no state income tax, therefore no state tax deduction for 529 contribution.

OP can pick from most competitive plans nationwide

Mike
Thank you, do you have any recommendations? I'm going to look at the NH one . I can't find much info on the fidelity " national" . Il look more when I get by a computer
The NH plan is the National plan.

https://www.fidelity.com/529-plans/overview

Scroll down.
Vanguard/Fidelity | 76% US Stock | 16% Int'l Stock | 8% Cash
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