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Message
START (Louisiana 529)
Posted on 10/18/08 at 8:15 pm
Posted on 10/18/08 at 8:15 pm
I'm currently looking at starting this for my daughter who is 8 weeks old, just waiting on her social security number to come in. What are you guys take on it? It looks to be a really great deal and would really help later on. Try to get the grandparents to contribute to it also.
2
Posted on 10/18/08 at 10:54 pm to tke_swamprat
it is one of the best in the country, NO reason not to do it and now is a great time to start
Posted on 10/18/08 at 11:46 pm to Zilla
to be honest LA's plan is not too bad. Here are a few things to look at:
1.) Your tax bracket/income- the more you make the less LA give you... in that case if you are in a top tax bracket look elsewhere.
2.) All I remember you can pick from is Vanguard... great to be the market, but you never beat the market.
I set a lot of clients up with the American Funds College American 529 plan. It is the plan sponsored by the state of VA. Check it out. Good long term performance.
1.) Your tax bracket/income- the more you make the less LA give you... in that case if you are in a top tax bracket look elsewhere.
2.) All I remember you can pick from is Vanguard... great to be the market, but you never beat the market.
I set a lot of clients up with the American Funds College American 529 plan. It is the plan sponsored by the state of VA. Check it out. Good long term performance.
Posted on 10/19/08 at 11:54 am to CaptainJ47
quote:
I set a lot of clients up with the American Funds College American 529 plan. It is the plan sponsored by the state of VA. Check it out. Good long term performance.
What kind of commission are your clients paying for you to set this up?
Posted on 10/19/08 at 5:11 pm to tke_swamprat
The Louisiana program was actually rated the best plan that you can self-enroll in (you don't need a broker) by savingforcollege.com.
I was in the American Funds plan through the state of Va (mentioned by another poster) for my first child...and I ended up trasferring the assets to the La plan.
Why pay a broker when La has a great program!
I was in the American Funds plan through the state of Va (mentioned by another poster) for my first child...and I ended up trasferring the assets to the La plan.
Why pay a broker when La has a great program!
Posted on 10/19/08 at 8:13 pm to geauxzer
The difference between the 2 plans comes back to return after fees. Take a look at the longterm performance of the several of the American Funds mutual funds... ones like the Capital World Growth and Income fund, the Growth Fund of America, and the Capital Income Builder.
I am not saying that the LA plan is not good, I just prefer the VA one. It all comes down to return after fees and finding a way to beat the market.
I am not saying that the LA plan is not good, I just prefer the VA one. It all comes down to return after fees and finding a way to beat the market.
Posted on 10/19/08 at 8:37 pm to CaptainJ47
So how much is your commission to sell the VA plan?
Posted on 10/19/08 at 9:24 pm to Cash
Commissions are the same on that plan as they are on every other mutual fund. It is a sliding scale if you put a client in A shares or 1% if they select C shares. The determining factors are how long do you plan on holding these funds and do you already have money with American Funds. Many of my clients had American Funds so the upfront charge was significantly less. The highest I ever saw was 5.75% for the smallest investor. Many of them were around 3%.
Posted on 10/19/08 at 9:36 pm to CaptainJ47
I just took a look at the 10 year returns on the Vanguard Total Index Fund vs the Capital World Growth and Income Fund and the Capital Income Builder.
With fees and charges included, the average annual returns for the past 10 years have been:
Vanguard: 4.06
Cap. WGI: 9.95%
Cap Income Builder: 6.82
All of the above are through 9/30/08 (most recent per both websites). Also, the examples used for American Funds assume the MAX sales charge. Now if earning twice as much scares someone from paying an upfront sales charge... then that is their problem. Performance speaks for itself. The goal is to OUTPERFORM the market, not simply be the market.
The difference in an initial $10,000 investment with $100 monthly investments would be:
Vanguard: $29,922
Cap WGI: $46,797
Cap IB: $36,904
Not sure about you, but $17k extra after 10 years works for me.
With fees and charges included, the average annual returns for the past 10 years have been:
Vanguard: 4.06
Cap. WGI: 9.95%
Cap Income Builder: 6.82
All of the above are through 9/30/08 (most recent per both websites). Also, the examples used for American Funds assume the MAX sales charge. Now if earning twice as much scares someone from paying an upfront sales charge... then that is their problem. Performance speaks for itself. The goal is to OUTPERFORM the market, not simply be the market.
The difference in an initial $10,000 investment with $100 monthly investments would be:
Vanguard: $29,922
Cap WGI: $46,797
Cap IB: $36,904
Not sure about you, but $17k extra after 10 years works for me.
Posted on 10/20/08 at 11:57 am to CaptainJ47
Awesome. Do you also have a service where you permit your clients to travel back in time 10 years to invest in those particular funds?
Posted on 10/21/08 at 4:18 am to Cold Cous Cous
where can i open a louisiana 529??
thanks
thanks
Posted on 10/21/08 at 4:48 pm to CaptainJ47
quote:
I set a lot of clients up with the American Funds College American 529 plan. It is the plan sponsored by the state of VA. Check it out. Good long term performance.
That's what I've set up for my daughter(23 months) and about to start for my new daughter at teh end of the year.
Posted on 10/21/08 at 9:49 pm to lsutigers11
Posted on 10/22/08 at 1:13 am to Cash
does you child have to be born? if so how long after the child is born can you apply?
Posted on 10/22/08 at 5:05 am to lsutigers11
I beleive as long as they have a SSN, they are eligible
Posted on 10/22/08 at 9:52 am to 9Fiddy
I read on the offical website of the LA START 529 program that the state matches from 2% - 14% depending on your income levels. Does anyone know that if there's a cap on the matching the state provides? I'm sure there is one so if someone would provide the actual dollar amount that would be very helpful b/c I can't find it anywhere on the website.
Posted on 10/22/08 at 12:54 pm to Hammond Tiger Fan
Posted on 10/22/08 at 1:51 pm to lsutigers11
quote:
does you child have to be born? if so how long after the child is born can you apply?
Technically no, as with all 529 plans the beneficiary can be changed. So in essence you can create one now, name yourself beneficiar then transfer to a child at birth.
But "free" advise won't give u these ideas.
Posted on 10/22/08 at 3:39 pm to Cdawg
quote:
That's what I've set up for my daughter(23 months) and about to start for my new daughter at teh end of the year.
That's what I've got too ... until quite recently it was doing AWESOME ... like doubling my money (no, we hadn't added to it as we weren't able to for a while) ... don't even want to look now but oh, well ... it's gotta come back. We started our right when they came out .. I think before the LA plan was out ... I just like my money all being handled through 1 company.
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