I really appreciate your content! I saw one of your other videos wherein you showed the funds breakdown for your kids. I remember you doing 25% in each of 4 categories, and none of which was a total market index fund. Do you have a video wherein you explain your rationale in using the 4 funds instead of just 100% into a total market index fund?
Yeah, so that was the Utah plan and it only allowed for 25% into a single fund. They have since changed that. I do videos periodically and have a playlist on the channel for it.
Great video Travis! Is the fee that you are talking about the expense ratio from the Vanguard 500 Index within the 529? Or are there other "hidden fees" that the 529 plan charges? I'm from IL and our 529 plan (Bright Start) also had the Vanguard 500 with expense ratio of 0.02%.
I live in Louisiana. What are you thoughts on which plan I should choose? I have a 3 year old and 10 month old. The state tax benefit according to the website is up to $4,800. I’m like you, I’d prefer the S&P 500 style funds.
Hi Travis, I'm in the state of NY and confused as to either opening a NY state 529 or Merrill NextGen 529 for my kids they're 2yrs. I'm currently looking for a new job, so worried my family could move to another state. What's your advice?
depends on your income and if you can get the state income tax deduction to use the NY plan. Don't overthink it. Start saving. You can move the money to another plan later if you need. You can check out some of my other videos where I share which plans I use and how I invest.
Hi Travis, really appreciate your videos. I'm struggling with whether to go with FL prepaid, savings, or a trading account. I'm a Florida resident and my kid is 9 years old. I drew out the comparison table for all 3 accounts, but still struggling to find a definite push to one. I think the biggest struggles are the benefit of tax free earning vs the flexibility of a trading account. Any suggestion would be greatly appreciate.
Isn't Virginia the lowest 529 rate outside of Florida if you are selecting the index fund option. From what I'm seeing, they offer around six basis points in total fees (0.06%) for their index option. Am I missing something?
I think you're looking at the Total Stock Market Index option, which is what I would choose in that plan for my kids. It includes more than just large cap stocks found in an S&P500 fund which is what I was going after. The fees though are a bit more than just 6 basis points, Asset Management Fee .02%, Admin Fee .049% and the expense ratio of .069% = .138% BUT honestly, this is fine too.
I am looking at the Charles Schwab 529 plan which is the Kansas plan. It seems to have pretty good reviews, and I like that it is with a company I have some of my other investments with, but it seems to be a separate login. I am wondering how the UI side of things look with the Kansas plan?
Are there any limitations on where the 529 funds can be spent under these different accounts? Like if open a Florida 529 but we move and my kid doesn’t want to go to a Florida school etc?
529 savings plans can be used in many schools around the country and abroad. The PREPAID plans are more limiting but the savings plans have way more flexibility.
I would definitely prefer Floridas fund quality over tax breaks. Meanwhile I went with New Hampshire, S&P 500 with 0 .11 fee with no minimums. But there are too many states to survive comparing.
I just opened a ScholarShare 529 for my kids which is a California 529 Saving plan, but I am willing to open one more in any other state if fees and investment options are better.
Hi. I got the My529 plan for Utah for both my boys 10 and 11 years old. Currently I have them in the 2032/2033 plan. Do you recommend switching the plans to the customized static UTVLX plan at 100 percent for both?
I don't recommend anything purely based on the fact I can't provide straight up advice because I'm an advisor. But, I do invest my kids plans into the S&P500 funds at 100% and have no intentions of changing. The real risk is a downturn in the market right before they go to school but I personally do not care because it won't fund it 100% with a 529 plan, you can still roll a good amount into their Roth IRA later, and it can be used for other kids or grandkids as well.
A good video that I don't think I have already done is a comparison of what it might look like in terms of returns of 100% into the SP500 fund vs a target date fund like you have selected.
ok. yeah i just used my first out of 2 plan changes and put both my boys under the my529 Institutional Index UTVLX at 100 percent. see what happens. Understand you haven't done a video on a comparison of 100% returns on a target date vs 100% on just the snp500. I'll keep an eye out for that one. thanks. @@TravisSickle
I really appreciate your content! I saw one of your other videos wherein you showed the funds breakdown for your kids. I remember you doing 25% in each of 4 categories, and none of which was a total market index fund. Do you have a video wherein you explain your rationale in using the 4 funds instead of just 100% into a total market index fund?
Yeah, so that was the Utah plan and it only allowed for 25% into a single fund. They have since changed that. I do videos periodically and have a playlist on the channel for it.
Do those 2 states have any other benefits compared to other states besides the low fees?
Great video! Any chance you would be willing to do a video on NJ resident best options please?
I'm trying to figure out a better way to do more videos on the different plans.
Great video Travis! Is the fee that you are talking about the expense ratio from the Vanguard 500 Index within the 529? Or are there other "hidden fees" that the 529 plan charges? I'm from IL and our 529 plan (Bright Start) also had the Vanguard 500 with expense ratio of 0.02%.
I’m looking at all the fees. Expense ratio is only one of them. I wouldn’t lose sleep over a few basis points either. Some will but I don’t.
@@TravisSickle I actually just found out that our 529 plan here in IL charges a 0.56% account fee.
I live in Louisiana.
What are you thoughts on which plan I should choose? I have a 3 year old and 10 month old. The state tax benefit according to the website is up to $4,800. I’m like you, I’d prefer the S&P 500 style funds.
It looks like VLISX is the closest match.
Hi Travis, I'm in the state of NY and confused as to either opening a NY state 529 or Merrill NextGen 529 for my kids they're 2yrs. I'm currently looking for a new job, so worried my family could move to another state. What's your advice?
depends on your income and if you can get the state income tax deduction to use the NY plan. Don't overthink it. Start saving. You can move the money to another plan later if you need. You can check out some of my other videos where I share which plans I use and how I invest.
Hi Travis, really appreciate your videos. I'm struggling with whether to go with FL prepaid, savings, or a trading account. I'm a Florida resident and my kid is 9 years old. I drew out the comparison table for all 3 accounts, but still struggling to find a definite push to one. I think the biggest struggles are the benefit of tax free earning vs the flexibility of a trading account. Any suggestion would be greatly appreciate.
You checkout that last video I posted on this?
Isn't Virginia the lowest 529 rate outside of Florida if you are selecting the index fund option. From what I'm seeing, they offer around six basis points in total fees (0.06%) for their index option. Am I missing something?
I think you're looking at the Total Stock Market Index option, which is what I would choose in that plan for my kids. It includes more than just large cap stocks found in an S&P500 fund which is what I was going after. The fees though are a bit more than just 6 basis points, Asset Management Fee .02%, Admin Fee .049% and the expense ratio of .069% = .138% BUT honestly, this is fine too.
what would be the best 529 plan for a south dakota resident?
Hi. I’m in TX:. What is your suggestion for 529?
I am looking at the Charles Schwab 529 plan which is the Kansas plan. It seems to have pretty good reviews, and I like that it is with a company I have some of my other investments with, but it seems to be a separate login. I am wondering how the UI side of things look with the Kansas plan?
no idea, I use Schwab for my investment firm but not their 529 plan.
Are there any limitations on where the 529 funds can be spent under these different accounts? Like if open a Florida 529 but we move and my kid doesn’t want to go to a Florida school etc?
529 savings plans can be used in many schools around the country and abroad. The PREPAID plans are more limiting but the savings plans have way more flexibility.
I would definitely prefer Floridas fund quality over tax breaks. Meanwhile I went with New Hampshire, S&P 500 with 0 .11 fee with no minimums. But there are too many states to survive comparing.
I agree, too many states to review but sort of irrelevant for most. A bunch of great options for everyone. The key is to start saving.
I live California which 529 will be best for tax breaks and is low cost and also with lower contributions
I just opened a ScholarShare 529 for my kids which is a California 529 Saving plan, but I am willing to open one more in any other state if fees and investment options are better.
Hi. I got the My529 plan for Utah for both my boys 10 and 11 years old. Currently I have them in the 2032/2033 plan. Do you recommend switching the plans to the customized static UTVLX plan at 100 percent for both?
I don't recommend anything purely based on the fact I can't provide straight up advice because I'm an advisor. But, I do invest my kids plans into the S&P500 funds at 100% and have no intentions of changing. The real risk is a downturn in the market right before they go to school but I personally do not care because it won't fund it 100% with a 529 plan, you can still roll a good amount into their Roth IRA later, and it can be used for other kids or grandkids as well.
A good video that I don't think I have already done is a comparison of what it might look like in terms of returns of 100% into the SP500 fund vs a target date fund like you have selected.
ok. yeah i just used my first out of 2 plan changes and put both my boys under the my529 Institutional Index UTVLX at 100 percent. see what happens. Understand you haven't done a video on a comparison of 100% returns on a target date vs 100% on just the snp500. I'll keep an eye out for that one. thanks.
@@TravisSickle
@@TravisSickle How do you select 100 % as Vanguard S&P 500 in Utah/Ohio Plan? Thanks a lot