Skip Ahead Here! 0:00 - 529 vs Brokerage Account: Which Is Better For College Savings? 0:33 - How do 529 plans work? 1:14 - How do brokerage accounts work? 2:00 - Is a 529 a brokerage account? 2:24 - What are the key differences between a custodial brokerage account and a 529 plan? 8:29 - Who can contribute to a 529 plan or brokerage account? 8:50 - Is a 529 plan better than a brokerage account?
@@DistrictCapital I have only 1 child and have no plans for advanced classes. In the event of my child not going to college at all, could I simply withdraw the money with penalty?
@@kcanyon9108 Vanguard's 529 Plan is sponsored by the State of Nevada. Each 529 plan has a state sponsor. You could use your own state 529 plan and get the tax deduction and then use Nevada's for the remainder if you chose to do so.
@@kcanyon9108 Vanguard's plan is sponsored by the state of Nevada. If you wanted to fund your state plan up to the state tax deduction and then use Nevada's 529 plan for the remainder, you could do that.
Skip Ahead Here!
0:00 - 529 vs Brokerage Account: Which Is Better For College Savings?
0:33 - How do 529 plans work?
1:14 - How do brokerage accounts work?
2:00 - Is a 529 a brokerage account?
2:24 - What are the key differences between a custodial brokerage account and a 529 plan?
8:29 - Who can contribute to a 529 plan or brokerage account?
8:50 - Is a 529 plan better than a brokerage account?
Great video. Let's say if my kid doesn't go to college at all. What happens to my money contributed to 529 plan?
You can change the beneficiary. You can even name yourself as the beneficiary, in case you'd like to take some advanced or masters classes!
@@DistrictCapital I have only 1 child and have no plans for advanced classes. In the event of my child not going to college at all, could I simply withdraw the money with penalty?
Are you currently saving for your child's college?
I am a little confused. Do I get tax benefits if I invest in a vanguard 529 plan?
It'll grow tax free if used for educational purposes. For state tax deductions, it depends on the state you live in.
@@DistrictCapital thank you. May I contribute enough just to get state tax deduction, and contribute the rest to vanguard plan?
@@kcanyon9108 Vanguard's 529 Plan is sponsored by the State of Nevada. Each 529 plan has a state sponsor. You could use your own state 529 plan and get the tax deduction and then use Nevada's for the remainder if you chose to do so.
@@kcanyon9108 Vanguard's plan is sponsored by the state of Nevada. If you wanted to fund your state plan up to the state tax deduction and then use Nevada's 529 plan for the remainder, you could do that.
@@DistrictCapital Thank you, I live in New York, so am I out of luck for state tax deduction?