Comments on: Kiplinger’s Best 529 College Savings Plans

By: Flexo

Flexo — Wed, 01 Jul 2009 22:02:25 +0000

TIAA-Cref is lower cost than a lot of companies out there, but there have been many reports of investors having significant trouble with customer service, with some unrecovered mistakes by the company costing investors more than any management fee would have. I’ve had some small problems with TIAA-Cref in comparison, but I’ve written about the issues here over the past several years and even years later visitors stop by Consumerism Commentary to share their stories of misery. I still have some money invested there because I haven’t been motivated enough to move it out, but I don’t plan on sending any new money to TIAA-Cref.

By: Greg

Greg — Wed, 01 Jul 2009 21:58:44 +0000

What’s the matter with Michigan’s TIAA-CREF managed plan? I thought they were
one of the lowest cost operators around…..

By: Ari

Ari — Wed, 01 Jul 2009 16:02:00 +0000

You can start a 529 at any time – even for yourself. You can change the beneficiary once a year and some planners think about this as another opportunity for tax-free savings. The money can be used for any qualified educational expense.

Also, I wouldn’t be so quick to knock American Funds – they run a pretty good shop with a good performance record for many of their funds.

By: James

James — Wed, 01 Jul 2009 16:01:04 +0000

I have two accounts using VEST. They have very low fees and have no issues setting up ACH withdraws. All of the options are age based and will change automatically given the age of your child. So far I have gotten a 10% return since I started about 6 months or so ago.

By: MyJourney

MyJourney — Wed, 01 Jul 2009 15:20:44 +0000

With a kid hopefully on its way – I have been thinking about this for a while. Once I am past the point on no return (get an ok from the doc that all is well) I plan on opening a NY 529 (NY Resident here).
The tax benefits for your NY Tax Paying Readers:

https://uii.nysaves.s.upromise.com/content/taxbenefits.html

By: Flexo

Flexo — Wed, 01 Jul 2009 13:39:42 +0000

Excellent point. I did not consider those who live in one state and work in another, complicating their state income tax.

By: HOBtrvlr

HOBtrvlr — Wed, 01 Jul 2009 12:15:29 +0000

Not exactly true about not being able to take advantage of other states’ tax benefits. I also live in NJ–but I work in NY. The NY plan allows for an up-to-$10k tax deduction for *anyone* who pays taxes in the state. So, even though I live in NJ, I have invested in the NY plan (run by Vanguard, with good options and low fees!), and will be able to deduct any contributions I make on my NY tax return.

Incidentally, I’ve read that the NJ plan is one of the worst out there. As you mentioned, it does not have any front-end tax benefits, and I believe it is an “advisor” plan, which has much higher fees associated with it.