Here is a 3-year performance ranking of all direct-sold 529 Savings Plans. (See my previous post for an explanation of the difference between Savings Plans and Prepaid Plans.) This ranking table does not account for tax benefits that some state plans provide on contributions. Because this isn’t comparing specific portfolios (i.e. the age-based option for 10-year-olds) but rather an aggregate…
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529 Plans
There’s no such thing as a dumb question, but asking questions seems to make plenty of people– myself included– feel dumb, which then causes us not to do it. For those who find themselves wishing they had asked more about 529 plans, here is a “back to basics” guide. (As an aside, there is a veritable alphabet soup of college…
While there’s a modicum of truth in this, the aid formulas really penalize you for not saving. Here’s why: Income is the biggest factor in every aid formula, and the aid formulas count more of your income than you’re likely to have available on an annual basis. Why? Because they assume that your income has been fairly consistent and linear for the…
The Oregonian’s Brent Hunsberger gives a great explanation of why target-date funds or age-based portfolios can be problematic: http://www.oregonlive.com/finance/index.ssf/2014/01/conservative_age-based_funds_i.html#incart_river
Oregon residents who contribute to the Oregon 529 Plan can take a state tax deduction for contributions made up until April 15 (or when you file your taxes, if earlier). If you intend to make a 529 plan contribution in the first quarter of this year and did not contribute the maximum deductible amount ($4,455 for joint filers or $2,225…