View Single Post
Old 11-22-2020, 03:17 PM
  #9  
Excargodog
Perennial Reserve
 
Excargodog's Avatar
 
Joined APC: Jan 2018
Posts: 11,409
Default

Originally Posted by Winston View Post
529 plans are almost all extremely conservative in their allocation. Over a 20 year-ish period you’ll have a time horizon to even out the ups and downs and will have a much greater likelihood of success investing in a straight SP500 index fund. Then you can help junior pay for whatever you want (college, housing, travel abroad) with no restrictions from a greater nest egg, even with the tax implications.

Whatever you do: create a plan and diligently stick to it.
Most 529 plans let you allocate from a variety of choices - including S&P index funds and ETFs and unlike Index funds outside the 529 you are not paying federal (and often state) taxes on any qualified withdrawals. He ought to consult the pros (I like Vanguard) for the details in his state but in most states the programs have more flexibility than you seem to think they do.
I certainly agree with your last statement though

https://investor.vanguard.com/529-pl...th-end-returns



Vanguard 529 portfolios

Want a more hands-on approach to investing? Design and manage your own investment strategy by choosing up to 5 of 20 of our individual portfolios. As college and other education goals get closer, you decide how and when to rebalance your investments.

Choose a portfolio name to view standardized returns
Excargodog is offline