Those who live in USA and have kids , can you share if you are using any 529 Plan for your kid’s education fund. If yes what were your consideration in chosing a plan and why you chose one over another.
If not , did you even consider it and if chose to not contribute to 529 then why??
Re: College Education Plan(529)
I didnot know what is the right place for this thread. Mod move it where you think it is appropriate.
Re: College Education Plan(529)
I hope this is right place and right time (for me at least) as my kid will join Kindergarten this year 
so experienced users, please shed some light and make it easy for me!
Re: College Education Plan(529)
Mod Bhai,
Move it to General. That way we will get more response.
On this forum people are talking about how to patao girl and what gift to buy. What I want to talk about comes after that. ;)
Re: College Education Plan(529)
yes, NY state one because we get a tax benefit on our state taxes. seems likea good idea...really that was the main reason for us.
Re: College Education Plan(529)
I have not yet started a 529 because of some remaining paperwork with the adoption that I am waiting on. But I am definitely going to start it. Have not really looked much into it though.
Re: College Education Plan(529)
I have two; one in NJ and one in CA for neices.
Each state has its own 529 plan, I use that.
Re: College Education Plan(529)
We have one for each of our kids. Watch out, because there are two different types - prepaid tuition and college savings. We use the college savings plan, and chose the option of bond mutual funds. Earnings on it are not taxed, although there is a penalty if you withdraw the money and don't use it for college expenses. You can contribute up to $200,000 per child. The money can be used for tuition, books, fees, room & board, etc.
Sometimes prepaid tuition plans can be a better deal, especially if you are settled in a particular state and have a strong desire for your child to go to an in-state school there.
Re: College Education Plan(529)
I have two; one in NJ and one in CA for neices. Each state has its own 529 plan, I use that.
why you chose different one? Did you compare and tried to find out which one is better?
Re: College Education Plan(529)
We have one for each of our kids. Watch out, because there are two different types - prepaid tuition and college savings. We use the college savings plan, and chose the option of bond mutual funds. Earnings on it are not taxed, although there is a penalty if you withdraw the money and don't use it for college expenses. You can contribute up to $200,000 per child. The money can be used for tuition, books, fees, room & board, etc.
Sometimes prepaid tuition plans can be a better deal, especially if you are settled in a particular state and have a strong desire for your child to go to an in-state school there.
Earning is not taxed only in those cases where you contribute from post-tax money. But if you contribute from Pre-tax money then it will be taxed. Correct me if I am wrong.
I am really tring to find out what are the different criteria one must look for when searching for 529 Plan. How do one compare one with other?
Re: College Education Plan(529)
I'm not sure - I'll have to ask my husband about this one. Our financial planner suggested which 529 plan was best for us. They really do vary between states, but my advice would be to ask your accountant or financial planner for a little direction. In our case our state offers two different plans, pre-paid tuition and investment. The investment plan (stocks, mutual funds, etc.) is not guaranteed by the state, so if you chose the stock-heavy plan and stocks tanked, your investment may not appreciate. We chose to invest in treasury bonds, because although the return is less they are more stable.
By the way, once you do open a 529, go to www.upromise.com and sign up. Every time I spend money on certain products or in certain places, they donate an amount or a percentage into my son's 529. I have to buy groceries anyway, so it's like free money. We recently bought a GM car, and they added $200.00 into his account. So far he's earned around $700.00 from upromise.
Re: College Education Plan(529)
Mod Bhai,
Move it to General. That way we will get more response. On this forum people are talking about how to patao girl and what gift to buy. What I want to talk about comes after that. ;)
And you think that is not important? no patao girl, no bacchas. No 529 or whatever u amrikan.
Re: College Education Plan(529)
why you chose different one? Did you compare and tried to find out which one is better?
Most 529 plans allow outside investors but you really have to sit down and compare them all. It's very much like picking a mutual fund, so the same criteria applies: past performance, current management, and fees are very important.