[deleted] t1_ja8lmpd wrote
Reply to comment by Bangkok_Dangeresque in (US) Where should I open a 529 account - through my state's program, Fidelity, Vanguard...does it matter? by tobesjax
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Cruian t1_ja8mupo wrote
You'll need to run the math to see how much of an impact the ER difference would be and compare that to the tax savings (don't forget to consider the tax savings as additional investments).
Bangkok_Dangeresque t1_ja8mwjf wrote
Can you share which state you're in, your state tax rate, and amount you plan to contribute? It's a math problem of whether the drag from bad investment options/high fees outweighs the tax savings from contributing to the eligible state plan. In most cases, the tax benefits still win.
You should also be aware, you can't just open a "fidelity" 529. Fidelity manages a few state plans (Arizona, Mass, Connecticut, Delaware, and New Hampshire), and for non-residents who still want a fidelity-managed plan, they route them to the NH.
Though even in that plan, you don't get access to the full suite of Fidelity funds. They have a few options for managed portfolios that you can choose.
Same goes for Vanguard plans. They manage New York, Colorado, and Nevada's plans, and route non-residents to their Nevada plan.
[deleted] t1_ja8n48y wrote
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Bangkok_Dangeresque t1_ja8nifw wrote
The Ohio plan has many Vanguard funds as investment options. Either as the "Vanguard Ohio Target Enrollment Portfolios", or you can just straight up invest in Vanguard US, international, and bond market index funds.
There's really no advantage for you to look elsewhere.
[deleted] t1_ja8q3ml wrote
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[deleted] t1_ja8ne2g wrote
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Longjumping-Nature70 t1_ja9m0wd wrote
Our state was Vanguard, and Fidelity is no better or worse than Vanguard. If you despise the Vanguard then don't worry about the state tax deduction and go with Fidelity.
Some states have BAD ones though. I rate Vanguard and Fidelity run ones as good ones.
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