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Learning, Sharing, and Teaching => Mini Money Mustaches => Topic started by: Huffduf41 on May 31, 2017, 10:14:51 AM

Title: Michigan Mustachian 529 Question
Post by: Huffduf41 on May 31, 2017, 10:14:51 AM

DW and I have a baby girl coming our way in October.  Just curious if there are any benefits of going with the Michigan MESP vs Vanguard/Fidelity 529 accounts.

Thanks!!!!!!!!!!!!!

Title: Re: Michigan Mustachian 529 Question
Post by: AncientVoice on May 31, 2017, 11:36:18 AM

We set up accounts for our grandchildren.  We looked into both MESP and Vanguard.  For us, the benefit that swayed us to the MESP was that it reduced the Michigan taxable income where the Vanguard account did not.  The drawback was that the investments weren't Vanguard options.  The MESP monies can be used at any accredited university, college or vocational school nation wide.

Title: Re: Michigan Mustachian 529 Question
Post by: Huffduf41 on May 31, 2017, 12:27:13 PM

Thanks.  After reading your reply I checked Vanguard's website and it looks the savings are a couple hundred/year if I go with the MESP.

Title: Re: Michigan Mustachian 529 Question
Post by: protostache on June 03, 2017, 11:42:39 AM

You can deduct up to $10,000 from your state income taxes which would net you $425 per year. My daughter has a small MESP account invested in their "aggressive" age-based option, which has an overall ER of 0.14%, or $14 per year per $10,000.