Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Some state 529 plans allow you to pick your own funds (from a collection they offer), while some only offer the age-based packages. I have some of each (five grandchildren) and I've done better where I can choose.
After reviewing all available options, we chose Iowa 529 plan that uses a host of Vanguard index funds. The choices are either age-based or individual portfolio. We are very happy with the age-based portfolio and its return for the past 15 years. By the way, we skipped our home state, Oregon 529. The state administrator consistently picked poor fund families that run the plan. First it was the Strong, then came Oppenheimer, and now TIAA-CREF. Even with state tax deduction, we decided to forgo the incentive and went with Iowa's plan instead.
@Sven I recall Oppy being thrown out of Oregon after the market melt. They were sued by the state, too; eh? We forgo a tax deduction too with not investing in the Michigan 529 operated by TIAA; which was our reason for not using Michigan, using the Vanguard and DFA mix with Utah. http://www.uesp.org/Customized-Static.aspx Utah's mix and match choices. The Vanguard funds are darn near free with the ER's.
Oppenheimer's investors (529 participants) took a sizable loss in their "Core Bond" within a conservative portfolio. Oppenheimer settled out of court and a new administrator, TIAA-CRAF was named afterward doj.state.or.us/releases/pages/2009/rel111909.aspx
It paid to get to know these companies prior to commit your 529 $ to them. Strong funds was charged with 2002-2003 mutual fund scandal, actually the worst offender charged among others. The founder of Strong fund, Dick Strong was banned for life from security exchange business afterward, and the mutual fund business was sold to Wells Fargo.
We considered Utah and decided to stay with States that Vanguard would manage the underlying portfolio and bookkeeping (i.e. all $ reside at Vanguard) for full transparency. In the end we picked Iowa over Nevada and New York based on the portfolio makeup with added exposure to emerging market. Thing may have changed since then. https://personal.vanguard.com/us/whatweoffer/college/finda529Popup.jsf?cbdForceDomain=false
Other states including Utah use low cost Vanguard index funds and other mutual funds. I am glad to heat that Utah 529 is able to fulfill your need. Recently we changed our 529 portfolio since our kid will be attending college in less than 3 years.
I recall the choices for the TIAA Michigan 529 were limited 10+ years ago and the fees were much higher for a direct purchase (which we use, no advisor stuff). I checked MI 529 today and find the fees are now competitive. NOTE: Much has changed during the past 10 years in the 529 marketplace. I recall quite a few vendor changes in numerous state plans; as well as significant fee reductions.
MICH 529 TIAA This links to multi-fund choices, with single fund choices clickable on the right side page edge. The multi-funds (I read) are funds of funds. These appear to be suitable enough for most folks.
'Course the bugger with any of the choices are the restrictions on changing the investment choices; which, until 2015 was limited to 1 switch per calendar year and is now 2 allocation changes each year. This is now sufficient, IMHO.
Anyhoo..........Utah's plan was more appealing to us a number of years ago, and still is; and we find no need to transfer from this into Michigan's current offering. Don't know that I implied a negative towards TIAA, just not the best choice at the time and wouldn't likely be the choice today.
Comments
Combined annualized total return = 6.4% per year.
I recall Oppy being thrown out of Oregon after the market melt. They were sued by the state, too; eh?
We forgo a tax deduction too with not investing in the Michigan 529 operated by TIAA; which was our reason for not using Michigan, using the Vanguard and DFA mix with Utah.
http://www.uesp.org/Customized-Static.aspx Utah's mix and match choices. The Vanguard funds are darn near free with the ER's.
doj.state.or.us/releases/pages/2009/rel111909.aspx
It paid to get to know these companies prior to commit your 529 $ to them. Strong funds was charged with 2002-2003 mutual fund scandal, actually the worst offender charged among others. The founder of Strong fund, Dick Strong was banned for life from security exchange business afterward, and the mutual fund business was sold to Wells Fargo.
We considered Utah and decided to stay with States that Vanguard would manage the underlying portfolio and bookkeeping (i.e. all $ reside at Vanguard) for full transparency. In the end we picked Iowa over Nevada and New York based on the portfolio makeup with added exposure to emerging market. Thing may have changed since then.
https://personal.vanguard.com/us/whatweoffer/college/finda529Popup.jsf?cbdForceDomain=false
Other states including Utah use low cost Vanguard index funds and other mutual funds. I am glad to heat that Utah 529 is able to fulfill your need. Recently we changed our 529 portfolio since our kid will be attending college in less than 3 years.
I recall the choices for the TIAA Michigan 529 were limited 10+ years ago and the fees were much higher for a direct purchase (which we use, no advisor stuff).
I checked MI 529 today and find the fees are now competitive.
NOTE: Much has changed during the past 10 years in the 529 marketplace. I recall quite a few vendor changes in numerous state plans; as well as significant fee reductions.
MICH 529 TIAA This links to multi-fund choices, with single fund choices clickable on the right side page edge. The multi-funds (I read) are funds of funds. These appear to be suitable enough for most folks.
UTAH 529 plan choices, individual selections This is the "build your own" list. The recent adds of the DFA funds have "high" expenses, relative to the Vanguard choices.
'Course the bugger with any of the choices are the restrictions on changing the investment choices; which, until 2015 was limited to 1 switch per calendar year and is now 2 allocation changes each year. This is now sufficient, IMHO.
Anyhoo..........Utah's plan was more appealing to us a number of years ago, and still is; and we find no need to transfer from this into Michigan's current offering. Don't know that I implied a negative towards TIAA, just not the best choice at the time and wouldn't likely be the choice today.
K...........back to house painting here.
Regards,
Catch