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Any thoughts on different ways to allocate between LA K12 and Start college plans? 50/50? Load up K12 to fund private school and hope for college scholarship?

I'm still navigating this part. You can convert K12 to START but not other way.
My initial plan was load up K12 enough to pay for 4 years of private high school and convert the rest to START if cash flow is fine.

Website answers some common questions but I'm pretty sure K12 is not state tax deductible like START is - someone please correct me if wrong because I'm very curious about this.

I need that state tax deduction but I'm not interested in overfunding START/529 for college. The private school thing is locked in, college tuition who knows.

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Posted by lynxcat

Member since Jan 2008

24255 posts

Posted on 3/26/22 at 11:15 pm to metallica81788

Living in TX, we don’t get the state income tax deduction benefit. I’m currently figuring out which provider to go with for the 529. Texas 529 looks higher in fees than is necessary so not seeing a benefit of using that one. Schwab has 0.25% fees for a index based approach but I don’t like the cash drag they require in even their most aggressive portfolio. 5% cash drag might as well add to the 0.25% fee…this is the same BS Schwab pulls with its intelligent advisor portfolios (which also have no way to avoid the cash drag). Vanguard looks appealing. Huge number of portfolio options that appear to be 100% invested in underlying funds. Total stock market portfolio has a 0.12% fee which is the lowest I’ve seen thus far.

Any watchouts I haven’t considered here? I want to aggressively invest in low cost index funds for whatever 529 I choose.

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