Comments on: 529 Plans: Age-Based Options Don’t Make Sense http://thefinancebuff.com/529-plans-age-based-options-dont-make-sense.html like a friend telling you about money ... Wed, 23 May 2012 19:06:27 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: TFB http://thefinancebuff.com/529-plans-age-based-options-dont-make-sense.html#comment-8425 TFB Thu, 05 Apr 2012 22:31:54 +0000 http://thefinancebuff.com/2010/01/529-plans-age-based-options-dont-make-sense.html#comment-8425 Will - If you decide to follow the allocations as I outlined, that means both new money and existing money will go to the new allocation when the child's age hits the next age group. Will – If you decide to follow the allocations as I outlined, that means both new money and existing money will go to the new allocation when the child’s age hits the next age group.

]]> By: Will http://thefinancebuff.com/529-plans-age-based-options-dont-make-sense.html#comment-8424 Will Thu, 05 Apr 2012 22:21:25 +0000 http://thefinancebuff.com/2010/01/529-plans-age-based-options-dont-make-sense.html#comment-8424 Excellent article and recommendations TFB :) And thanks for the quick reply! One last question...When my daughter turns 3 and I adjust...should I simply change my future monthly contributions to reflect the new risk change from then until she turns 5 or pick up my entire portfolio and reallocate all I have invested so far and drop it all down on the new risk allocations? Excellent article and recommendations TFB :) And thanks for the quick reply! One last question…When my daughter turns 3 and I adjust…should I simply change my future monthly contributions to reflect the new risk change from then until she turns 5 or pick up my entire portfolio and reallocate all I have invested so far and drop it all down on the new risk allocations?

]]> By: TFB http://thefinancebuff.com/529-plans-age-based-options-dont-make-sense.html#comment-8421 TFB Thu, 05 Apr 2012 17:18:19 +0000 http://thefinancebuff.com/2010/01/529-plans-age-based-options-dont-make-sense.html#comment-8421 Will - See my <a href="http://thefinancebuff.com/best-529-plan-age-based-investment-options.html#comment-8282" rel="nofollow">recommendation</a> for a conservative allocation using Ohio's CollegeAdvantage plan. I don't recommend dialing up the risk. Will – See my recommendation for a conservative allocation using Ohio’s CollegeAdvantage plan. I don’t recommend dialing up the risk.

]]> By: Will http://thefinancebuff.com/529-plans-age-based-options-dont-make-sense.html#comment-8416 Will Thu, 05 Apr 2012 02:52:46 +0000 http://thefinancebuff.com/2010/01/529-plans-age-based-options-dont-make-sense.html#comment-8416 Hey guys, I set up an account with collegeadvantage exactly 1 year ago when my daughter was about to turn 1. I've been doing automatic contributions of $100 to the VAAB age based aggressive option. She's about to turn 2 and decided to do a little more research....I don't have a very strong background in investing. I was thinking of doing: 20% VAAB (Vanguard Aggressive Age Based) 40% OMSS (Oppenheimer Main Street small and mid cap option 40% some other 100% stock risky investment I'd like to be pretty risky for her first few years. Maybe I should abandon the VAAB altogether? I need help! lol I want risky but the stocks that I buy that are risky - I want to stay in my account for over a decade. Hey guys, I set up an account with collegeadvantage exactly 1 year ago when my daughter was about to turn 1. I’ve been doing automatic contributions of $100 to the VAAB age based aggressive option. She’s about to turn 2 and decided to do a little more research….I don’t have a very strong background in investing. I was thinking of doing:

20% VAAB (Vanguard Aggressive Age Based)
40% OMSS (Oppenheimer Main Street small and mid cap option
40% some other 100% stock risky investment

I’d like to be pretty risky for her first few years.
Maybe I should abandon the VAAB altogether? I need help! lol I want risky but the stocks that I buy that are risky – I want to stay in my account for over a decade.

]]> By: Vicki http://thefinancebuff.com/529-plans-age-based-options-dont-make-sense.html#comment-8218 Vicki Wed, 14 Mar 2012 19:29:23 +0000 http://thefinancebuff.com/2010/01/529-plans-age-based-options-dont-make-sense.html#comment-8218 I will be back Monday! Thanks! I will be back Monday! Thanks!

]]> By: TFB http://thefinancebuff.com/529-plans-age-based-options-dont-make-sense.html#comment-8215 TFB Wed, 14 Mar 2012 17:51:39 +0000 http://thefinancebuff.com/2010/01/529-plans-age-based-options-dont-make-sense.html#comment-8215 @Vicki - Come back on Monday. I will answer your question in a new article. @Vicki – Come back on Monday. I will answer your question in a new article.

]]> By: Vicki http://thefinancebuff.com/529-plans-age-based-options-dont-make-sense.html#comment-8214 Vicki Wed, 14 Mar 2012 17:38:48 +0000 http://thefinancebuff.com/2010/01/529-plans-age-based-options-dont-make-sense.html#comment-8214 I am looking for a 529 for both of my children. One is 8 and the other is 6. Please tell me what to choose. I am looking at Utah's plan as it seems it has a good longer term return as well as short term so far and it has low costs. I live in CA so there is no tax incentive to invest within CA. I was just about to enroll in an age based plan here but pulled up your page before I signed on the dotted line. Help!! I just want this over with. I thought I had looked at all options and was satisfied with my decision until I read your article. I am looking for a 529 for both of my children. One is 8 and the other is 6. Please tell me what to choose. I am looking at Utah’s plan as it seems it has a good longer term return as well as short term so far and it has low costs. I live in CA so there is no tax incentive to invest within CA. I was just about to enroll in an age based plan here but pulled up your page before I signed on the dotted line. Help!! I just want this over with. I thought I had looked at all options and was satisfied with my decision until I read your article.

]]> By: Mike http://thefinancebuff.com/529-plans-age-based-options-dont-make-sense.html#comment-7103 Mike Fri, 09 Sep 2011 15:50:52 +0000 http://thefinancebuff.com/2010/01/529-plans-age-based-options-dont-make-sense.html#comment-7103 If you don't like the typical age based allocation of 529 plans but want the simplicity of the shifting allocation and low expenses, folks may be interested in a recent change to Utah's 529 plan. In addition to lowering the asset fee from 0.22% to 0.20% (which is in addition to fund fees - but those funds are institutional Vanguard funds like total stock market at .02% ER.. so overall it is still cheap) they now offer the ability to create your own age based plan and it will automatically adjust at the age brackets. Take a look at possible options and the fee calculator : http://www.uesp.org/Investment-Info/Customized-Age-Based-Fee-Calculator.aspx If you don’t like the typical age based allocation of 529 plans but want the simplicity of the shifting allocation and low expenses, folks may be interested in a recent change to Utah’s 529 plan. In addition to lowering the asset fee from 0.22% to 0.20% (which is in addition to fund fees – but those funds are institutional Vanguard funds like total stock market at .02% ER.. so overall it is still cheap) they now offer the ability to create your own age based plan and it will automatically adjust at the age brackets. Take a look at possible options and the fee calculator : http://www.uesp.org/Investment-Info/Customized-Age-Based-Fee-Calculator.aspx

]]> By: cd http://thefinancebuff.com/529-plans-age-based-options-dont-make-sense.html#comment-7091 cd Sun, 04 Sep 2011 22:13:25 +0000 http://thefinancebuff.com/2010/01/529-plans-age-based-options-dont-make-sense.html#comment-7091 @tfb - thx for the info! truly appreciate it! @tfb – thx for the info! truly appreciate it!

]]> By: TFB http://thefinancebuff.com/529-plans-age-based-options-dont-make-sense.html#comment-7090 TFB Sun, 04 Sep 2011 21:11:59 +0000 http://thefinancebuff.com/2010/01/529-plans-age-based-options-dont-make-sense.html#comment-7090 @cd - Yes I think at age 14, the age-based allocation in USAA's Nevada 529 plan is too risky. It invests 47% in stocks when the money is needed in 4-7 years. The Preservation of Capital looks better if you must stay in that plan. Otherwise you may want to consider a plan that offers CDs or fixed income options, for example Ohio (FDIC-insured CDs) or Michigan (TIAA-CREF Principal Plus Interest). @cd – Yes I think at age 14, the age-based allocation in USAA’s Nevada 529 plan is too risky. It invests 47% in stocks when the money is needed in 4-7 years. The Preservation of Capital looks better if you must stay in that plan. Otherwise you may want to consider a plan that offers CDs or fixed income options, for example Ohio (FDIC-insured CDs) or Michigan (TIAA-CREF Principal Plus Interest).

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