Funding 2 529 plans @ Updated@
Funding 2 529 plans @ Updated@
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?
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.
Re: Funding 2 529 plans
Aggressive Growth Portfolio (Fidelity Index Funds)
https://www.fidelity.com/529-plans/investment-options
https://www.fidelity.com/529-plans/investment-options
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Re: Funding 2 529 plans
This er is almost 1%pizzy wrote: ↑Tue Oct 26, 2021 9:07 am Aggressive Growth Portfolio (Fidelity Index Funds)
https://www.fidelity.com/529-plans/investment-options
Re: Funding 2 529 plans
You aren't looking at the index version.B-rad wrote: ↑Tue Oct 26, 2021 9:17 amThis er is almost 1%pizzy wrote: ↑Tue Oct 26, 2021 9:07 am Aggressive Growth Portfolio (Fidelity Index Funds)
https://www.fidelity.com/529-plans/investment-options
https://fundresearch.fidelity.com/mutua ... ppcode=529
Vanguard/Fidelity | 76% US Stock | 16% Int'l Stock | 8% Cash
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Re: Funding 2 529 plans
Are you going to contribute to a state fund at Fidelity, or their national plan?
Re: Funding 2 529 plans
I will have to see what they provide for TX.TallBoy29er wrote: ↑Tue Oct 26, 2021 9:25 am Are you going to contribute to a state fund at Fidelity, or their national plan?
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Re: Funding 2 529 plans
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.B-rad wrote: ↑Tue Oct 26, 2021 9:43 amI will have to see what they provide for TX.TallBoy29er wrote: ↑Tue Oct 26, 2021 9:25 am Are you going to contribute to a state fund at Fidelity, or their national plan?
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%
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).
Re: Funding 2 529 plans
TallBoy29er wrote: ↑Tue Oct 26, 2021 10:12 amSo 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.B-rad wrote: ↑Tue Oct 26, 2021 9:43 amI will have to see what they provide for TX.TallBoy29er wrote: ↑Tue Oct 26, 2021 9:25 am Are you going to contribute to a state fund at Fidelity, or their national plan?
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%
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
Re: Funding 2 529 plans
Texas has no state income tax, therefore no state tax deduction for 529 contribution.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%
OP can pick from most competitive plans nationwide
Mike
Re: Funding 2 529 plans
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 computerfabdog wrote: ↑Tue Oct 26, 2021 11:27 amTexas has no state income tax, therefore no state tax deduction for 529 contribution.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%
OP can pick from most competitive plans nationwide
Mike
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Re: Funding 2 529 plans
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.
Good call out about no TX state income tax.
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Re: Funding 2 529 plans
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.
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Re: Funding 2 529 plans
The NH plan is the National plan.B-rad wrote: ↑Tue Oct 26, 2021 12:13 pmThank 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 computerfabdog wrote: ↑Tue Oct 26, 2021 11:27 amTexas has no state income tax, therefore no state tax deduction for 529 contribution.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%
OP can pick from most competitive plans nationwide
Mike
https://www.fidelity.com/529-plans/overview
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