Cheapest 529 Plan
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Cheapest 529 Plan
What is the cheapest 529 plan if I want exposure to the S&P 500 index or a total stock market fund? I live in MO so my $16,000 tax deduction can go to any state 529 plan.
Re: Cheapest 529 Plan
California Scholarshare
https://www.scholarshare529.com/research/fees.shtml
Expand the "Single Fund Portfolio" option, you can own the equivalent of VTSAX for 0.06%. The fund is from TIAA-CREF (TIEIX).
Technically the tieix fund tracks Russell 3000, which is approximately 98% of total stock market.
https://www.scholarshare529.com/research/fees.shtml
Expand the "Single Fund Portfolio" option, you can own the equivalent of VTSAX for 0.06%. The fund is from TIAA-CREF (TIEIX).
Technically the tieix fund tracks Russell 3000, which is approximately 98% of total stock market.
(AGE minus 23%) Bonds | 5% REITs | Balance 80% US (75/25 TSM/SCV) + 20% International (80/20 Developed/Emerging)
- mrpotatoheadsays
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Re: Cheapest 529 Plan
I've often heard it's Utah's Educational Savings Plan (https://my529.org) but maybe it is the "best" and not the "cheapest".
Single fund Total US Stock Market (UTSTX ) appears to be 0.120%.
But most people go with a enrollment date funds which appear to be ~0.141%.
Re: Cheapest 529 Plan
Utah's My529 have been consistently among the cheapest plans for a long, long time.
In the last 3-4 years though, California Scholarshare has become much cheaper. It is one of the "hidden gem" plan that does not get mentioned a lot on forums like these, but is really good.
In general you won't go wrong with either CA, UT or NV plans - they are all great. CA also has a passive age-based plan with 0.12% fees. I think NV is in the same range, and UT is 0.14%. NV and UT plans use Vanguard funds, CA uses TIAA funds. Op mentioned they wanted to go with S&P500 or TSM, in which case CA will be really competitive and difficult to beat in terms of fees.
In the last 3-4 years though, California Scholarshare has become much cheaper. It is one of the "hidden gem" plan that does not get mentioned a lot on forums like these, but is really good.
In general you won't go wrong with either CA, UT or NV plans - they are all great. CA also has a passive age-based plan with 0.12% fees. I think NV is in the same range, and UT is 0.14%. NV and UT plans use Vanguard funds, CA uses TIAA funds. Op mentioned they wanted to go with S&P500 or TSM, in which case CA will be really competitive and difficult to beat in terms of fees.
(AGE minus 23%) Bonds | 5% REITs | Balance 80% US (75/25 TSM/SCV) + 20% International (80/20 Developed/Emerging)
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Re: Cheapest 529 Plan
Illinois 529 has one of the lowest ER, e.g., 0.02% for Vanguard total stock market index fund.
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Re: Cheapest 529 Plan
It's 0.09% for IL for VTSAX
https://www.brightstart.com/performance ... tfolio=all
https://www.brightstart.com/performance ... tfolio=all
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Re: Cheapest 529 Plan
https://www.virginia529.com/invest/fees-expenses/
If you scroll down to the Index funds and look at the far right column you’ll see the expense ratio. The index funds all track the similarly named Vanguard ETF. So 0.07% for Vanguard’s Total Stock Market.
If you scroll down to the Index funds and look at the far right column you’ll see the expense ratio. The index funds all track the similarly named Vanguard ETF. So 0.07% for Vanguard’s Total Stock Market.
- anon_investor
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Re: Cheapest 529 Plan
Oh nice, the fees dropped, it used to be 0.11%-0.12%.HappyPappy wrote: ↑Sun Jan 23, 2022 6:38 am https://www.virginia529.com/invest/fees-expenses/
If you scroll down to the Index funds and look at the far right column you’ll see the expense ratio. The index funds all track the similarly named Vanguard ETF. So 0.07% for Vanguard’s Total Stock Market.
- mrpotatoheadsays
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Re: Cheapest 529 Plan
Ah, a case for "best". I would not do business with TIAA, just as I would not do business with Wells Fargo.gas_balloon wrote: ↑Sat Jan 22, 2022 11:03 pm NV and UT plans use Vanguard funds, CA uses TIAA funds.
Reference: https://www.nytimes.com/2017/10/21/busi ... -tiaa.html
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Re: Cheapest 529 Plan
You might be thinking of the Date Target funds? Those are still high, in my opinion.anon_investor wrote: ↑Sun Jan 23, 2022 7:11 amOh nice, the fees dropped, it used to be 0.11%-0.12%.HappyPappy wrote: ↑Sun Jan 23, 2022 6:38 am https://www.virginia529.com/invest/fees-expenses/
If you scroll down to the Index funds and look at the far right column you’ll see the expense ratio. The index funds all track the similarly named Vanguard ETF. So 0.07% for Vanguard’s Total Stock Market.
It looks like Virginia 529's expense ratios for their funds that track the Vanguard Total International Stock Market, Total Stock Market, and Total Bond Market ETFs equal Vanguard's expense ration plus an additional 0.049%
- anon_investor
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Re: Cheapest 529 Plan
Well I just view the underlying fund expense ratio plus 529 admin/management fee as the actual Expense Ratio, which was around 0.11% for the Vanguard Total Stock Market Index last year. Glad to see they keep lowering it, as it was 0.12% a few years ago. It may have been even higher when I opened up my Virginia 529 plan accounts 5+ years ago.HappyPappy wrote: ↑Sun Jan 23, 2022 8:47 amYou might be thinking of the Date Target funds? Those are still high, in my opinion.anon_investor wrote: ↑Sun Jan 23, 2022 7:11 amOh nice, the fees dropped, it used to be 0.11%-0.12%.HappyPappy wrote: ↑Sun Jan 23, 2022 6:38 am https://www.virginia529.com/invest/fees-expenses/
If you scroll down to the Index funds and look at the far right column you’ll see the expense ratio. The index funds all track the similarly named Vanguard ETF. So 0.07% for Vanguard’s Total Stock Market.
It looks like Virginia 529's expense ratios for their funds that track the Vanguard Total International Stock Market, Total Stock Market, and Total Bond Market ETFs equal Vanguard's expense ration plus an additional 0.049%
Re: Cheapest 529 Plan
This looks like a pretty good option for op to go with as a total us fund from vanguard. Based on their description I think they're using https://institutional.vanguard.com/inve ... /fund/0855 as the fund.HappyPappy wrote: ↑Sun Jan 23, 2022 6:38 am https://www.virginia529.com/invest/fees-expenses/
If you scroll down to the Index funds and look at the far right column you’ll see the expense ratio. The index funds all track the similarly named Vanguard ETF. So 0.07% for Vanguard’s Total Stock Market.
(AGE minus 23%) Bonds | 5% REITs | Balance 80% US (75/25 TSM/SCV) + 20% International (80/20 Developed/Emerging)