529 Plan Options
Posted: Fri Feb 18, 2011 11:00 am
All,
After researching all my potential options college savings options, although I 'm not thrilled with the investment choices in most 529 plans, I have narrowed my selection to the following two choices and would greatly appreciate any feedback and/or suggestions:
Disclosure: Illinois resident which now has a 5% state income tax rate and offers a tax deduction for 529 contributions. However, any funds transferred out of Illinois they have a tax recapture provision.
Option #1
Illinois Bright Start Direct Program
Invest in their Choice Based Portfolio which consists of the following and has a total plan fee of 0.20%:
35% in Vanguard Institutional Index Fund
5% in Vanguard Extended Market Index Fund
10% in Vanguard Developed Markets Index Fund
40% in Vanguard Total Bond Index Fund
10% in Oppenheimer Institutional Money Market Fund
Option #2
Ohio College Advantage Direct Program
They have a few investment choices that I am considering such as:
20% in Vanguard Total US Stock Market (0.25% fees)
5% in Vanguard Developed Market (0.25% fees)
25% in Total Bond Market (0.25% fees)
25% in TIPS (0.28% fees)
25% in Pimco Total Return (0.79% fees)
Again, any advise is appreciated.
Thanks,
Heather
After researching all my potential options college savings options, although I 'm not thrilled with the investment choices in most 529 plans, I have narrowed my selection to the following two choices and would greatly appreciate any feedback and/or suggestions:
Disclosure: Illinois resident which now has a 5% state income tax rate and offers a tax deduction for 529 contributions. However, any funds transferred out of Illinois they have a tax recapture provision.
Option #1
Illinois Bright Start Direct Program
Invest in their Choice Based Portfolio which consists of the following and has a total plan fee of 0.20%:
35% in Vanguard Institutional Index Fund
5% in Vanguard Extended Market Index Fund
10% in Vanguard Developed Markets Index Fund
40% in Vanguard Total Bond Index Fund
10% in Oppenheimer Institutional Money Market Fund
Option #2
Ohio College Advantage Direct Program
They have a few investment choices that I am considering such as:
20% in Vanguard Total US Stock Market (0.25% fees)
5% in Vanguard Developed Market (0.25% fees)
25% in Total Bond Market (0.25% fees)
25% in TIPS (0.28% fees)
25% in Pimco Total Return (0.79% fees)
Again, any advise is appreciated.
Thanks,
Heather