529 Plan..

Ok, I've decided to move ahead with opening a 520 plan for my daugther's education. Now, I need to pick a plan. Since I admit I don't know too much about these plans I thought I'd ask a couple of questions, mainly directed to meat and bootay, but anyone feel free to contribute worthwile information. I think I have a plan I like. It's the Virginia Education Savings Trust.

Now, that fund not withstanding, which is better in your opinion age-based evolving portfolios or non-evolving portfolios? Age-based seem easier but I'm afraid they get to conservative too quickly and as a result forfeit gaines. Here is this funds timeline It starts out at 80/20. I'm 100% stock in my own stuff right now, but I'm 34 and aggresive.

The fees for the above fund seem reasonable and the underlying assets are in American/Vanguard/ etc funds so that seems ok. In VA I can deduct $2,000 in contributions from my State income tax. I'm guessing this is better than finding an out-of-state plan with possibly lower fees. Am I correct?

 

I did the NC one. I put 80% in the age based portfolio and 20% in an aggresive fund. That'll keep it a little edgier as they get older.

 

Hadn't thought of mixing it up like that. Thanks.

 

I'm on the Virginia Plan too. So far, so good.

 

Good to know. That particular plan seems like a good one but I'm going to look at a couple more before I choose.

 

Pretty sure that you can deduct your contributions from your STATE taxes if you use the plan from your state. Federal taxes regardless.

 

Yes, In VA its $2,000 now and I think it's going up to $4,000 in a year or two. There are other out-of-state plans with lower fees but I think tax deduction triumps over that.