529 programs
 

Does anyone have anything good or bad to say about 529 programs to pay for grandchildren(s) college tuition, etc. I have 4 grandchildren ranging from 16 down to 2. I have talked with a couple of financial guys in TV and they don't seem to be interested in selling this type of program. I suspect that it does not pay a very good commission. I know that we would incur penalties if the child does not go on to higher education but I don't think that this will be the case. If anyone has any pro's or con's regarding 529s please pass the on. Thank you.

I am using "The Educational Plan" primarily because I get a meaningful income tax deduction in my state of domicile. https://www.theeducationplan.com/OFI529/

Ever mindful of commissions and other costs I bought it directly, not through an advisor, although one can buy the plan through an advisor. I found it very easy to do over the internet.

Vanguard, Schwab and Fidelity must have plans which may have lower costs. If I were domiciled in a state not providing a state income tax deduction for enrolling in this particular plan I would probably go with Vanguard.

Marabou town. Thanks for reply, it is appreciated. I have a small brokerage account with VanGuard and this would be a good place to start. Thanks again. PQ

There is a good background and overall information article in Money Magazine Jan/Feb 2016 edition p.112-117 (and maybe on the internet). Among other things, they recommend avoiding fees by brokers, show the better state funds (UT has been at top of list for some years) and give advice on being able to take tax benefits. Basically, if your state doesn't give you a tax break for contributions it is best to take a top rated fund in whatever state it is managed. You should also consider who is to be the trustee/owner of the fund(s) as that can effect financial ratings of students and parents when applying for financial grants.