529 College Savings Plan | The Ultimate Guide

529 College Savings Plans are a great way to save for your child's college education. In this video, we'll discuss what they are, how they work, and some of the benefits of using them.
▶︎ investor.vanguard.com/account...
Timecodes:
0:00 - Intro
1:01 - 529 College Savings Plan 101
3:50 - Vanguard 529 Investment Options
6:45 - 529 Frequently Asked Questions
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DISCLAIMER: I am not a financial adviser. These videos are for educational and entertainment purposes only. I am merely sharing my personal opinion. Please seek professional help when needed.

[@SukumarMehta22]

One note that wasn’t mentioned explicitly in this video: only the gains are subject to the 10% penalty if you don’t use it for a qualified expense

[@sumitbasnet1663]

This is key!! Thanks.

[@jakexake2940]

Of course, because its post tax contribution. That would amount to double taxation.

[@Jason-gp4hg]

Thank you 🙏 I got that one

[@Discovery123.]

Very helpful. Thanks rich dad.

[@jackg9526]

Thanks for the advice. I switched my aggressive 529s to the target date ones because it helps with risk, just like if they starting now during this economy and presumably aggressive plan would have had a larger drop in value.

[@jakexake2940]

exactly. equities are at their highest now. a drop is likely to happen.

[@seniorDAS]

Missing in the video is that you can deduct the amounts added to the 529 account for the state tax return. Just ensure it's a plan the state office endorses.

[@ryanylitalo152]

Not every state allows a deduction

[@bigdougdog]

AVN Branch? Do any time at Rucker? G.I. Bill and TAP enabled me to be much further along in life. Thanks for your videos they are helping my wife and I a lot.

[@hotdaddychula4203]

Thank you!

[@kyleboulanger7835]

Hi Tae, can you buy fractional shares for Vanguard ETFs like VOO or VOOG in a 529?

[@peterl2767]

Great content 👍

[@TaeKimFinancialTortoise]

Thank you 🙌

[@dannybui3542]

What happens if I invest in 529 for one year and hit hard time and lose my job and can't afford to invest? Thank you for your video and any guidance on this question 🙏

[@tshuxeng5267]

10% penalty on gains still beat getting taxed on gains every year instead of compounding.

[@jakexake2940]

true. this could be a loophole for after tax investments. I rather pay the 10% tax penalty than pay for a higher tax bracket in my 401K when I retire, or the higher tax bracket I need to pay when I earn from my non-qualified dividends.

[@benjaminsilver3324]

Great video

[@dmc912]

If you have more than one child is it better to open up one 529 and contribute to that or open up a 529 for each child?

[@DmitriyKl]

It is crazy that this video has less than 1000 views

[@rlouie05]

1:50 shows "Tax FREE Growth" on your slides yet you clearly say "Tax DEFFERRED Growth", so we pay Uncle Sam on the gains as this is basically a form of income, right?
Besides the gaffe above, nice introduction to 529 as we're debating if we should use Vanguard vs. our state-sponsored plan in ScholarShare.

[@eyecontact13]

65 percent in stocks at 8 - weak ; u know that , I get the idea , but why not adjust in like 5 years

[@jakexake2940]

Equities are priced so high at this time that a collapse may possibly happen, especially in NASDAQ where the magnificent six stocks are the ones rallying for NASDAQ. Starting a 529 now and buying these tech stocks may likely result in a loss for the holder in the immediate term. Thus, if you have a child going to college soon, this may not be for you. You are better off investing elsewhere because the tax benefit from 529 will be nothing compared to the loss of principle incurred.

[@thesuncollective1475]

Not a great opening explanation, I'm confused. So Its a unit trust fund and if it makes a profit it's tax free. Is that what you mean?

[@chetangupta2991]

The vangaurd 529 has an initial contribution of 3k. That is pretty steep. Is this the case with all 529 plans?

[@jenniferbohrer431]

fidelity 0

[@boba5559]

You can look into the 529 plan for your state. They will most likely have lower initial contributions plus some states even provide an annual state contribution amount!

[@KatiaIve]

@@jenniferbohrer431 what portfolio do you recommend for fidelity 529 plan?

[@nicolasblanc1567]

I thought you live in California? There are no tax benefits.

[@nitishsinghal]

There are many important missing points in this video which might discourage someone to start with 529 college savings plan at first.

[@magnetism693]

like what ?

[@royjohnson9043]

I always trust an Asian

[@shanjin6205]

😂hahaha

[@kar871]

Great video