Author Topic: Schwab 529 Plan  (Read 1290 times)


  • 5 O'Clock Shadow
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Schwab 529 Plan
« on: April 26, 2015, 02:50:20 PM »
Anyone have any experience with Schwab's 529 plan? Since I hold the majority of my assets over at Schwab, I feel opening an account there just to aggregate everything together is a good choice. I live in Texas, so no state tax deduction since Texas doesn't have a state tax.

This will primarily be for my unborn kid with myself named as the beneficiary. I figure if I saved a good $25-$50 a month for 9 years until I turn 30 (which is when I'll try to have kids), It'll lower the overall burden of saving for college when I actually have a kid.

I looked at Vanguard's 529, but it has maintenance fees for accounts under 3K, and I don't want to commit that much money into the account yet. Schwab, however, has a 5% mandatory cash allocation and is a little bit more expensive for its 100% aggressive index allocation which primarily uses Schwab's low cost etfs. However, no account minimums/maintenance fees and you can open an account with a whopping $25.

I'm looking into this because all my tax advantaged/deferred accounts are maxed, and taxable investing is my only option left.

Any responses would be appreciated!


  • Handlebar Stache
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  • Posts: 1450
Re: Schwab 529 Plan
« Reply #1 on: April 26, 2015, 07:43:03 PM »
The problem with a 529 is if no kid materializes or doesn't go to college.

We invested for our son using taxable accounts -- the low fee index funds can be very tax efficient. You should keep funding in your name & then consider transfering once you actually have a child.