California's 529 plan

NEW -> Contingent Buyer Assistance Program
ps99472

ps99472

New member
I'm planning to start a 529 plan for my two year old.  Being in the lovely state of CA, we can only invest post-tax dollars (like a ROTH) and of course the earnings (if there are any) grows tax free.  I know I can invest in any state's 529 plan but decided to choose CA due to the chance any new legislation might make it more tax favorable in the future (I must be dreaming).  In the end I'll be picking either an age based fund or index so fees should be in the 0.25%-0.3%.  Fidelity is the program manager for CA but I hear it might change.  Anyone know more about this?  Or anyone suggest another plan besides CA?
 
We use Fidelity for my son's 529 and it seems to be OK. I'm not as much of a fan of Fidelity's site as my other brokers, but considering I just allocated to the target year fund, it does not matter.
 
Is the ScholarShare College Savings Plan the CA 529 Plan?  I am totally new to the college savings plans and am looking into starting saving for my two kids.  Any advice is appreciated.

 
ps9 said:
I'm planning to start a 529 plan for my two year old.  Being in the lovely state of CA, we can only invest post-tax dollars (like a ROTH) and of course the earnings (if there are any) grows tax free.  I know I can invest in any state's 529 plan but decided to choose CA due to the chance any new legislation might make it more tax favorable in the future (I must be dreaming).  In the end I'll be picking either an age based fund or index so fees should be in the 0.25%-0.3%.  Fidelity is the program manager for CA but I hear it might change.  Anyone know more about this?  Or anyone suggest another plan besides CA?
Click to expand...

Might be better just to buy them a house or some type of investment they can have forever?  Not saying it's a bad idea for a 529.. just seems that we are all making decisions on something we don't know yet... Where they will go (if they don't rebel or stink it up at school), how much it will actually cost ($400K?  might as well buy them a house). 
 
I use Ameritrade 529 (I think it is Nebraska), but I believe the expense ratio on the S&P fund in the 529 there is lower than others.

Also, I suggest setting up a Coverdell plan for your kids education which also grows tax free but allows you to invest in actual stocks rather than limit you to a few funds.  This way you can get your kids excited about investing when they are 5-6 you can tell them that they own part of Disney/McDonalds, etc.

One thing to note about a Coverdell is that when they apply for College Grants/Scholarships they are supposed to report the money in there as an asset, so best to transfer from a Coverdell to a 529 during their Senior year of HS to avoid large assets in your childs name and risk the chance of losing out on a grant or scholarship because of it.
 
California's 529 Plan = www.scholarshare.com = TIAA CREF.  Not too many funds to choose from.  Very basic choices.  I got board of the age based portfolios so changed it to the US Equity Index Fund which does slightly better.
 
If your not investment savy get a 529 plan.  :)

(When I type on the iphone it does auto typing, so excuse the typos)
 
Use the scholars choice and put every penny in the aggressive growth fund.  Richie freeman is one of the best money managers on Wall Street that no one knows.  All of my children's funds are in there. If i can't manage it I will gladly let him.
 
I opened up a 529 through the Utah Educational Savings Plan (www.UESP.com). I found that their fees were the lowest, and their name consistently popped up when researching recommended 529's.
 
You folks don't need to worry. 90% of Irvine graduates will end up at Cal States Fullerton, UC Irvine or IVC where tuition is basically spare change so need need to have sophisticated college saving plans.
 
irvinehomeshopper said:
You folks don't need to worry. 90% of Irvine graduates will end up at Cal States Fullerton, UC Irvine or IVC where tuition is basically spare change so need need to have sophisticated college saving plans.
Click to expand...
AKA The IHO Plan.
 
irvinehomeshopper said:
You folks don't need to worry. 90% of Irvine graduates will end up at Cal States Fullerton, UC Irvine or IVC where tuition is basically spare change so need need to have sophisticated college saving plans.
Click to expand...

I think it's true.
 
You must log in or register to reply here.
Back
Top