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Old 12-05-2012, 10:41 AM
 
Location: Leesburg
154 posts, read 454,818 times
Reputation: 123

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I am having my first child and performing some research into the various 529 college savings plans Virginia has to offer. I also wanted to reach out to see if anyone out there uses one of these - your thoughts and recommendations are greatly appreciated. Thanks in advance!
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Old 12-05-2012, 10:55 AM
 
136 posts, read 223,141 times
Reputation: 93
I just started one this past summer. From what I learned, VA is one of the highest rated 529s and you can deduct your contribution from state taxes for the first $4,000. I and most people I know went with the vest option, more specifically the age-based option that automatically adjusts the aggressiveness of the fund as your child ages; I think I went with James River. You can also do the prepaid option, but it's pretty expensive and can't be used for room and board.

For what it's worth, my fund grew about 7% within the first three months.
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Old 12-05-2012, 11:02 AM
 
Location: Leesburg
154 posts, read 454,818 times
Reputation: 123
Quote:
Originally Posted by FC Merrifield View Post
I just started one this past summer. From what I learned, VA is one of the highest rated 529s and you can deduct your contribution from state taxes for the first $4,000. I and most people I know went with the vest option, more specifically the age-based option that automatically adjusts the aggressiveness of the fund as your child ages; I think I went with James River. You can also do the prepaid option, but it's pretty expensive and can't be used for room and board.

For what it's worth, my fund grew about 7% within the first three months.
Thank you! The vest option was the one I was leaning towards.
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Old 12-05-2012, 11:10 AM
 
Location: Chapel Hill, NC, formerly NoVA and Phila
9,781 posts, read 15,805,907 times
Reputation: 10894
I don't know if you did a search, but we have discussed this topic a few times:

https://www.city-data.com/forum/north...paid-plan.html

https://www.city-data.com/forum/north...s-tuition.html

https://www.city-data.com/forum/north...ings-plan.html

https://www.city-data.com/forum/north...-529-plan.html

https://www.city-data.com/forum/north...-529-vest.html
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Old 12-05-2012, 11:13 AM
 
Location: Leesburg
154 posts, read 454,818 times
Reputation: 123
Thanks!
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Old 12-05-2012, 12:01 PM
 
Location: Everywhere and Nowhere
14,129 posts, read 31,275,280 times
Reputation: 6921
I don't think getting feedback from other new parents is going to be all that helpful. You should probably try to get insights from older parents who actually paid all the way through and then ultimately used or didn't use it. There are probably a few of those on here.
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Old 12-05-2012, 05:06 PM
 
Location: New-Dentist Colony
5,759 posts, read 10,732,688 times
Reputation: 3956
Make 'em pay for their own college. That way they won't fritter it away drinking. My dad paid for mine, and I did just that for a few semesters. If your kid can stomach 4 years in the military--at least I think it's 4 years--that post-9/11 GI bill is reportedly a gold mine. I'm serious; I don't think people value things they don't have to work for.
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Old 12-05-2012, 06:56 PM
 
1,339 posts, read 3,469,225 times
Reputation: 2236
Quote:
Originally Posted by FC Merrifield View Post
For what it's worth, my fund grew about 7% within the first three months.
It's not worth anything at all!! Since you are investing in equities, just like your 401K, what matters is what the value is when you have to start withdrawing the funds. You will save yourself the heartburn by DCA-ing regularly and not watching/tracking the weekly or monthly fluctuations.
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Old 12-06-2012, 04:35 AM
 
Location: Everywhere and Nowhere
14,129 posts, read 31,275,280 times
Reputation: 6921
Quote:
Originally Posted by Carlingtonian View Post
Make 'em pay for their own college. That way they won't fritter it away drinking. My dad paid for mine, and I did just that for a few semesters. If your kid can stomach 4 years in the military--at least I think it's 4 years--that post-9/11 GI bill is reportedly a gold mine. I'm serious; I don't think people value things they don't have to work for.
I don't think that's true. My parents paid for mine and I value it as much or more than the graduate degree I paid for myself. My girlfriend's parents wouldn't pay for hers so she had to transfer schools 400 miles away to move in with me. I guess it worked out okay though since she never moved out.
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Old 12-06-2012, 07:24 AM
 
136 posts, read 223,141 times
Reputation: 93
Quote:
Originally Posted by kutra11 View Post
It's not worth anything at all!! Since you are investing in equities, just like your 401K, what matters is what the value is when you have to start withdrawing the funds. You will save yourself the heartburn by DCA-ing regularly and not watching/tracking the weekly or monthly fluctuations.
Yeah, I know you're right. I just threw it in there. I've been checking it about once a month, but I'm sure I'll get tired of it and won't bother in the future. But I have to admit, it felt good to see that number go up without any contribution from me.
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