State-sponsored 529 savings plans are tax-advantaged estate planning tools that can also be used to save for "higher education" expenses, a category which was recently expanded to include private and religious K-12 tuition. I've had an account with the Utah Educational Savings Plan, which was recently rebranded as My529, for years and have been very satisfied with their … [Read more...] about Should you use the Vanguard 529 Plan?
Search Results for: 529
The effect of estate tax repeal on the 529 scam
One of the first posts I wrote here was about the 529 scam. I explained that 529 plans are a way for wealthy individuals to permanently shield an almost unlimited amount of assets from taxation, and that the scam was made sustainable by the very large number of middle class people saving a very small amount of money who are absolutely convinced that 529 plans are a way to save … [Read more...] about The effect of estate tax repeal on the 529 scam
529 plans are a scam used by the rich to transfer wealth between generations
529 plans are special accounts authorized by their eponymous section of the Internal Revenue Code, "sponsored" by the states and administered, with some exceptions, by Upromise Investments. I am going to tell you five facts about 529 plans: Depending on the plan, you can contribute up to $511,758 in after-tax income per designated beneficiary (some states have … [Read more...] about 529 plans are a scam used by the rich to transfer wealth between generations
How to think about stockpiling Series I savings bonds
Become a Patron! A reader whose financial savvy I highly value surprised me the other day by saying that he'd been maximizing his Series I Savings Bond purchases for many years. This surprised me since the "fixed" portion of the semi-annual composite interest rate had hovered between 0% and 0.5% APY since 2012, and the "inflation" portion of the composite rate between 0% … [Read more...] about How to think about stockpiling Series I savings bonds
First-time homebuyer savings accounts, part 2 (Virginia, Colorado, Minnesota, Iowa, Idaho)
Become a Patron! I recently wrote in detail about the first-time homebuyer savings account tax deduction offered by the state of Oregon, and promised a followup with an assessment of similar accounts offered by other states. If you haven't read that post, then you should probably start there, since the concepts I describe there will be helpful as I skim through the remaining … [Read more...] about First-time homebuyer savings accounts, part 2 (Virginia, Colorado, Minnesota, Iowa, Idaho)