New To Investing Thread

[steve dave]

someone tell me how to choose a 529. just do the state plan where i live? do it through Fidelity since my retirement is there? seems to be a lot of options at first glance, admittedly have done about 5 minutes of research.

Nebraska has a really good so just contribute directly through the NE NEST plan. But I think each state has their own rules and plan and some of the states suck bigtime. NE's is good because my contributions can be deducted from my state taxes. This isn't really advice because I got as far as googling it and read NE had one of the better programs and just went with that.

[Phil Titola]

someone tell me how to choose a 529. just do the state plan where i live? do it through Fidelity since my retirement is there? seems to be a lot of options at first glance, admittedly have done about 5 minutes of research.

Nebraska has a really good so just contribute directly through the NE NEST plan. But I think each state has their own rules and plan and some of the states suck bigtime. NE's is good because my contributions can be deducted from my state taxes. This isn't really advice because I got as far as googling it and read NE had one of the better programs and just went with that.

MO has the same benefit using their MOST 529

['taterblast]

What’s more, seven “parity” states offer income tax breaks for contributions, regardless of which plan you use: Arizona, Arkansas, Kansas, Minnesota, Missouri, Montana, and Pennsylvania.4 If you call one of these states home, you have even more incentive to shop around because you’ll get a tax deduction or credit anyway.

[michigancat]

someone tell me how to choose a 529. just do the state plan where i live? do it through Fidelity since my retirement is there? seems to be a lot of options at first glance, admittedly have done about 5 minutes of research.

if your state has an income tax break, use their plan and pick an index fund to invest in. Otherwise use Fidelity (or Vanguard, but whatevs).

[catastrophe]

someone tell me how to choose a 529. just do the state plan where i live? do it through Fidelity since my retirement is there? seems to be a lot of options at first glance, admittedly have done about 5 minutes of research.

if your state has an income tax break, use their plan and pick an index fund to invest in. Otherwise use Fidelity (or Vanguard, but whatevs).

100p

Texas offers no real benefit (the price of living in a no income tax state) so I use Vanguard (which is technically a Nevada plan I think). Works easy as pie.

[chum1]

I have 529s for my kids. As far as I know, that'll just save a few bucks on capital gains taxes. I don't know if I should even care about that. It's a super small amount relative to the total cost of college.

[steve dave]

I have 529s for my kids. As far as I know, that'll just save a few bucks on capital gains taxes. I don't know if I should even care about that. It's a super small amount relative to the total cost of college.

not 100% certain you are aware of what the ol' S&P has been doing for the last decade....

[yoga-like_abana]

I have one 529 and a gaggle of kids. Knowing that if it's not used up by first kiddo it passes to next what are all of your thoughts on just putting the most amount into one of those rather than having various 529's with smaller amounts?

[steve dave]

I have one 529 and a gaggle of kids. Knowing that if it's not used up by first kiddo it passes to next what are all of your thoughts on just putting the most amount into one of those rather than having various 529's with smaller amounts?

we got lump sum gifts (in the form of wheat for top secret reasons  ) when each of our kids were born and started theirs with those funds. so each has their own. not sure if there are any pitfalls to just doing it your way though.

[catastrophe]

You can’t exactly share a 529 as far as I know, so if your kids are spaced less than four years apart it could be a pain figuring out how to manage those expenses. Of course you could just pay a year or two for one kid before passing it down, etc.

We have separate 529s for each kid. I really doubt they’ll leave any cash in either, but if they do there are plenty of ways to transfer the money while avoiding taxes. I think I even crunched the numbers and taking the 10% penalty and cashing out isn’t even necessarily a money loser if you had the money invested long enough.

[catastrophe]

I have 529s for my kids. As far as I know, that'll just save a few bucks on capital gains taxes. I don't know if I should even care about that. It's a super small amount relative to the total cost of college.

Unless my kids end up private grade schooling, I plan on making all my 529 contributions by at least 10 years before college, so I’m actually banking on the money mostly being market gains.

[chum1]

I have 529s for my kids. As far as I know, that'll just save a few bucks on capital gains taxes. I don't know if I should even care about that. It's a super small amount relative to the total cost of college.

not 100% certain you are aware of what the ol' S&P has been doing for the last decade....

Looks like the taxes would be about 10% of the total cost. Higher than I thought. Given that it's a one time type of expense, though, I still don't care all that much.

[chum1]

I have 529s for my kids. As far as I know, that'll just save a few bucks on capital gains taxes. I don't know if I should even care about that. It's a super small amount relative to the total cost of college.

Unless my kids end up private grade schooling, I plan on making all my 529 contributions by at least 10 years before college, so I’m actually banking on the money mostly being market gains.

That's awesome. Also very unusual, I'd think.

[Phil Titola]

You can’t exactly share a 529 as far as I know, so if your kids are spaced less than four years apart it could be a pain figuring out how to manage those expenses. Of course you could just pay a year or two for one kid before passing it down, etc.

We have separate 529s for each kid. I really doubt they’ll leave any cash in either, but if they do there are plenty of ways to transfer the money while avoiding taxes. I think I even crunched the numbers and taking the 10% penalty and cashing out isn’t even necessarily a money loser if you had the money invested long enough.

You can share it will family of yours.  I have all my niece/nephew on one kid right now just because I didn't want to open up separate for each.  As they decide to go to school or not I'll move it around.

[Kat Kid]

I have one 529 and a gaggle of kids. Knowing that if it's not used up by first kiddo it passes to next what are all of your thoughts on just putting the most amount into one of those rather than having various 529's with smaller amounts?

Same, you can change the name. I may regret later when I have to make multiple payments out of it for different kids but whatever.

[catastrophe]

I have 529s for my kids. As far as I know, that'll just save a few bucks on capital gains taxes. I don't know if I should even care about that. It's a super small amount relative to the total cost of college.

Unless my kids end up private grade schooling, I plan on making all my 529 contributions by at least 10 years before college, so I’m actually banking on the money mostly being market gains.

That's awesome. Also very unusual, I'd think.

Maybe unusual, but some people start contributing before their kid is even born!

[ben ji]

I have one 529 and a gaggle of kids. Knowing that if it's not used up by first kiddo it passes to next what are all of your thoughts on just putting the most amount into one of those rather than having various 529's with smaller amounts?

we got lump sum gifts (in the form of wheat for top secret reasons  ) when each of our kids were born and started theirs with those funds. so each has their own. not sure if there are any pitfalls to just doing it your way though.

Oh look, the Dave family doing more farm mafia crap. I'm assuming it was all on paper etc but I'm getting a kick out of imagining a hopper truck pulling into SD's suburban neighborhood then papa dave jumps out and says "Congrats! Brought a gift! Where's the closest elevator to here?!?"

[steve dave]

I have one 529 and a gaggle of kids. Knowing that if it's not used up by first kiddo it passes to next what are all of your thoughts on just putting the most amount into one of those rather than having various 529's with smaller amounts?

we got lump sum gifts (in the form of wheat for top secret reasons  ) when each of our kids were born and started theirs with those funds. so each has their own. not sure if there are any pitfalls to just doing it your way though.

Oh look, the Dave family doing more farm mafia crap. I'm assuming it was all on paper etc but I'm getting a kick out of imagining a hopper truck pulling into SD's suburban neighborhood then papa dave jumps out and says "Congrats! Brought a gift! Where's the closest elevator to here?!?"

yeah, it's 100% farm mafia stuff

[meow meow]

be more funny is steve dave's dad just started dumping it in the driveway

[Kat Kid]

how do you determine the cost basis on a bushel of wheat?

[steve dave]

how do you determine the cost basis on a bushel of wheat?

I have no idea, I hate farming

[DaBigTrain]

 

[Phil Titola]

Sure like that farming cashola

[yoga-like_abana]

Cash crops.. the crypto of the real world

[chum1]

https://twitter.com/TerribleFinance/status/1454111428139528194