Author Topic: Choosing an Investment House for a 529  (Read 1139 times)

Mikila

  • Stubble
  • **
  • Posts: 233
Choosing an Investment House for a 529
« on: January 21, 2017, 11:02:21 AM »
Hi Guys! 

Does anyone have any insights on choosing an investment house to open a 529?  I am looking for broad aggressive investment choices and low fees.  I would like to deposit 10K and leave it for about 10 years.  I am currently going to school and thought to name myself as beneficiary and later change it to one of my children, or perhaps my sister, if they want to go to college.  I am disinclined to pull out funds on my own behalf since there wouldn't be much time for the funds to grow (2 yrs left).  My research thus far points me to Fidelity.  I have other accounts with Vanguard and TD Ameritrade and do not want to put my proverbial eggs all in one basket.  Does anyone here have experience using Fidelity?  What about their investment options for 529s? 

Thanks for any help you can provide.

seattlecyclone

  • Magnum Stache
  • ******
  • Posts: 4728
  • Age: 34
  • Location: Seattle, WA
Re: Choosing an Investment House for a 529
« Reply #1 on: January 21, 2017, 12:20:10 PM »
I went with Vanguard because I have most of my assets there and I would rather deal with fewer companies than more. Read this to help debunk your fear of putting "all your eggs in one basket." The phrase applies very well to holding too much of an individual stock, not so much to holding well-diversified index funds that just happen to be managed by the same company.

Mikila

  • Stubble
  • **
  • Posts: 233
Re: Choosing an Investment House for a 529
« Reply #2 on: January 22, 2017, 02:58:17 PM »
Alright, I read over that link and it spurred me to further research the issue, so I read articles in the WSJ and Forbes.  I can only conclude that the risk of total loss is very, very low, and so too is liquidity risk.  Thanks, SeattleCyclone. 

Car Jack

  • Handlebar Stache
  • *****
  • Posts: 1060
Re: Choosing an Investment House for a 529
« Reply #3 on: January 22, 2017, 04:20:19 PM »
Does your home state offer a tax deduction for contributions to the in-state 529?  That might drive your decision.  I just opened my first 529 this year because MA just started offering a deduction on income taxes when putting up to $2k (couple) into the in-state Fidelity managed 529.  I have a son in college, so the money's going in and coming right back out.

pdxvandal

  • Bristles
  • ***
  • Posts: 281
  • Location: Earth
Re: Choosing an Investment House for a 529
« Reply #4 on: January 22, 2017, 07:19:44 PM »
I put in money into my state's 529 (Oregon), which got a good state tax deduction. But the funds weren't great and had high expenses, so I transferred all of it to the Utah Educational Savings Plan (UESP). Low costs, good investment choices. Worth exploring.

Laserjet3051

  • Pencil Stache
  • ****
  • Posts: 660
  • Age: 90
Re: Choosing an Investment House for a 529
« Reply #5 on: January 23, 2017, 10:02:31 AM »
I also use Utah's UESP. Low cost. Good options.