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529 Account / Accounts for Child
Posted on 9/10/26 at 3:17 pm
Posted on 9/10/26 at 3:17 pm
I have a 1 year old and want to setup some accounts for his future.
Several have suggested I setup a 529.
Should this be done through Louisiana START? I can set one up through Schwab, but it seems there are advantages to using START instead.
I'm ignorant to this stuff and hoping for advice from those more informed.
Is a 529 the way to go?
I have a Trump account setup and also a separate savings account as well.
Should I be looking at any other account types?
Many Thanks
Several have suggested I setup a 529.
Should this be done through Louisiana START? I can set one up through Schwab, but it seems there are advantages to using START instead.
I'm ignorant to this stuff and hoping for advice from those more informed.
Is a 529 the way to go?
I have a Trump account setup and also a separate savings account as well.
Should I be looking at any other account types?
Many Thanks
Posted on 9/10/26 at 5:29 pm to 23parker
In general 529 plans offer flexibility.
Say this kid becomes a songwriter and does not go to college. You can change the beneficiary.
Or this kid goes to West Point. You can use the money as a Roth IRA source for him or her IF they have income.
If the go to college, 529 can be used for iterated expenses available at the 529 providers site, the university, or the IRS.
We had money left so we’ve done 2 full rounds of Roth IRAs for both of our kids.
Don’t do a Coverdell IRA. It’s not near as flexible.
Say this kid becomes a songwriter and does not go to college. You can change the beneficiary.
Or this kid goes to West Point. You can use the money as a Roth IRA source for him or her IF they have income.
If the go to college, 529 can be used for iterated expenses available at the 529 providers site, the university, or the IRS.
We had money left so we’ve done 2 full rounds of Roth IRAs for both of our kids.
Don’t do a Coverdell IRA. It’s not near as flexible.
Posted on 9/10/26 at 5:38 pm to 23parker
Highly recommended if you are pursuing education for your child. I am through Louisiana START. There are tax incentives for a 529, earnings enhancements, and protection that it is used strictly for your child's education. You have options if they never use the funds.
I just received a notice yesterday that they are changing the investments with a new entity starting in October. I glanced over it. It seems like an upgrade overall.
I just received a notice yesterday that they are changing the investments with a new entity starting in October. I glanced over it. It seems like an upgrade overall.
Posted on 9/10/26 at 6:02 pm to 23parker
Yes 529 is good. The LA one is actually pretty good. There is also a (small) tax deduction up to $4800 per kid per year
Posted on 9/10/26 at 6:05 pm to 23parker
quote:
Several have suggested I setup a 529
529 accounts are pretty safe investments.
quote:
I have a 1 year old and want to setup some accounts for his future.
Do you have life insurance? Is it whole life or term life?
If it is term life, I recommend getting a whole life plan for your child instead (or in addition to, if that's your jam). It is only affordable if you start at a young age (like your child is now), fits the purpose that you're purchasing child life insurance for, and also can be gifted to your child in adulthood and cashed out because it gains cash value. It isn't a huge sum of money, but it's better than the $0 you get from a typical life insurance plan that you hopefully didn't end up having a need for.
It's a better use of the money you're using for life insurance than just a term life plan that will eventually be irrelevant once your child is gainfully employed and (hopefully) purchasing his own life insurance. It's a little more expensive than a term life plan, but at your kid's age the difference was negligible for us.
This post was edited on 9/10/26 at 6:12 pm
Posted on 9/10/26 at 8:27 pm to Joshjrn
quote:
I have a Louisiana Start account and was extremely pleasantly surprised that they offer the institutional plus version of VTSAX, VITPX.
Got something in the mail today and apparently they are going to a new 3rd party administrator (probably a fallout of the hacking event). It claims expanded investment options but feels like fewer to me. Pretty much all of the Vanguard funds will map to either US Equity Index or International Equity index. Hopefully these are still vanguard funds with vanguard expense ratios.
Posted on 9/10/26 at 8:29 pm to imjustafatkid
quote:
If it is term life, I recommend getting a whole life plan for your child instead
Don't do this. Get term insurance for the amount you need. Then invest in securities separately. Whole Life policies are expensive ripoffs.
Posted on 9/10/26 at 10:24 pm to Finnish
Received the same START notice. Googled the new company and what ever they called the consolidated Vanguard group. Found a Indiana 529 they administer with the same fund title. Higher expense ratios, less options it appears.
The announcement said "more..., better...". All of that comes at a cost.
The announcement said "more..., better...". All of that comes at a cost.
Posted on 9/10/26 at 10:30 pm to Finnish
quote:
Got something in the mail today
I saw the letter and had the same concern. It looks like they are taking away some cap specific vanguard funds and only offering a broad equity index. I didn’t see expense ratios mentioned at all.
Posted on 9/10/26 at 11:30 pm to Penrod
quote:
Don't do this. Get term insurance for the amount you need. Then invest in securities separately. Whole Life policies are expensive ripoffs.
This is good advice, for adults. Also quite correct. Whole life plans are a rip off for adults.
Bad advice when buying a plan for a baby. The price difference is negligible. You're going to pay the money anyway. At least get something from it if the policy doesn't end up being needed.
This post was edited on 9/10/26 at 11:33 pm
Posted on 9/10/26 at 11:31 pm to weurf3
quote:Worked for a company that used Ascensus. They are OK, but we switched because they were very limited as a record keeper. Not impressed.
Received the same START notice. Googled the new company and what ever they called the consolidated Vanguard group. Found a Indiana 529 they administer with the same fund title. Higher expense ratios, less options it appears.
The announcement said "more..., better...". All of that comes at a cost.
Posted on 9/11/26 at 6:36 am to imjustafatkid
quote:
Bad advice when buying a plan for a baby.
Do you mean insuring the life of a baby? If so, both Whole and Term are bad ideas. Why in the world would anyone buy life insurance on a baby?
Posted on 9/11/26 at 6:45 am to 23parker
I have LA Start
The state matches 2/4/6 precent of your contribution based on your tax filing and the amount you contribute is deducted from income from state filings.
My rewards card is a UPromise CC with all cash back earnings linked to their start account going directly into my kids accounts. Last year $1048 was transferred.
The state matches 2/4/6 precent of your contribution based on your tax filing and the amount you contribute is deducted from income from state filings.
My rewards card is a UPromise CC with all cash back earnings linked to their start account going directly into my kids accounts. Last year $1048 was transferred.
Posted on 9/12/26 at 1:35 pm to imjustafatkid
A 529 is a type of account not an “investment.” To say it’s “pretty safe” is wrong and then validates the incorrect advice you started giving about life insurance.
A 529 plan can be invested in all equities not making it a “safe investment” or it can be in cash making it a bad idea because you’re not really getting much tax-free growth.
A 529 is a good idea for college planning and if you do it early enough you have the ability to convert a specific amount annually to a Roth IRA if it doesn’t all get used for college.
However, it’s not a great idea if you want the child to have access to the money earlier in life for home purchase etc.
A 529 plan can be invested in all equities not making it a “safe investment” or it can be in cash making it a bad idea because you’re not really getting much tax-free growth.
A 529 is a good idea for college planning and if you do it early enough you have the ability to convert a specific amount annually to a Roth IRA if it doesn’t all get used for college.
However, it’s not a great idea if you want the child to have access to the money earlier in life for home purchase etc.
Posted on 9/12/26 at 1:37 pm to TX_Tiger23
quote:
A 529 is a type of account not an “investment.” To say it’s “pretty safe” is wrong and then validates the incorrect advice you started giving about life insurance.
It's an investment. It gains value like any other investment.
My advice was correct in every way. You don't have to accept it, but it'll still be correct.
This post was edited on 9/12/26 at 1:38 pm
Posted on 9/12/26 at 1:56 pm to imjustafatkid
quote:
It's an investment. It gains value like any other investment.
My advice was correct in every way.
Yikes
Posted on 9/12/26 at 2:10 pm to Mingo Was His NameO
Exactly, he probably thinks his whole life policies are investments too.
Posted on 9/12/26 at 2:14 pm to imjustafatkid
quote:
My advice was correct in every way. You don't have to accept it, but it'll still be correct.
It seems many disagree with “correct in every way.” But hey…what do we know.
Posted on 9/12/26 at 3:10 pm to imjustafatkid
quote:
imjustafatkid
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