529 Savings Plan

digitalErich

Mathematical!
Joined
Sep 30, 2008
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Location
Portland, OR
#1
I think a lot of us have kids at this point, has anyone done a deep dive into 529 savings plans? I'm curious which plans people went with.

The Oregon state ones don't have super great tax benefits, so I would be open to basically any other state's/private plans. Vanguard (which manages my 401k) has one, but they want a decent seed (per kid), which is affordable for us but for some reason sort of irks me. That larger seed also means we might not be able to start it for another 10 months since we're currently house hunting.
 
Joined
Oct 1, 2008
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#3
I went through Vanguard, too, but maybe I was eligible for something else based on living in California. I’m happy with it.
 

digitalErich

Mathematical!
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Sep 30, 2008
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2
Location
Portland, OR
#5
You can opt into any private/state's 529 plan and it can be used for any university, as I understand it. You could be living in MI, go with a CA plan and use it to send your kid to FL (don't send your kids to Florida).

The only advantages (I think!) are that your home state's plan can offer some state tax benefits, but based on the calculator I used, the OR tax benefit was very minor, to the point where it doesn't seem to be a meaningful decision metric.
 

jpublic

Threadslayer
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Sep 30, 2008
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Toontown, Canuckia
#6
Here's my take, not having kids but just having paid what I see as exorbitant fees for my wife to go to a diploma school (paralegal certificate):

Given that tuition prices are already stupidly high, and probably only going to get worse, anything you can put away for their schooling at adulthood - be it university or a trade school - is going to help. Even just $50/mo will add up over the years, between interest and plan growth.
 

Mot Wakorb

47 Friendly Fires
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Sep 30, 2008
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Location
77 Sq. Mi surrounded by reality
#7
For myself, I was in two locations. My son has one here in Wisconsin and one in New Jersey (early on). I'm going to transfer the NJ one to Wisconsin as plan fees are cheaper and there are tax benefits for investing in-state. Since you're in a state that's not well advantaged, I invite you to start research here: https://www.savingforcollege.com/intro-to-529s/which-is-the-best-529-plan-available . That should get you a good start on what's best. Start small, over time. There's no rush, but getting a start counts. Hell, start at a savings account at a bank/credit union (yes, I said a bank. There are many online banks that offer better rates than credit unions offer.) Then if you need to front-load your account, you can do so over time while still advantaging yourself on your home down payment.

That's my two cents for ya.
 

digitalErich

Mathematical!
Joined
Sep 30, 2008
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2
Location
Portland, OR
#8
Yep, totally get the idea behind savings...been maxing out my 401k for years, just curious if anyone dove deep into 529s. As soon as both girls are into the public school system, what was going towards their day care will max out their 529s, but both are still very young so that's down the road. I just wanted to trickle a little money into these for the next couple of years.

That link is great Mot, curious why of all the sites like it but slightly worse that I found, I never came across this one. Thanks.
 
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