Author Topic: Stocks (Read 1199564 times)

ExGingi · « **Reply #2260 on:** December 01, 2016, 08:55:16 PM »

Quote from: aj26 on December 01, 2016, 06:54:40 PM

Don't the investments in 529 plans need to be in the garbage mutual funds your state allows?

One can invest in a 529 of any state, additional benefits are usually only available if investing in the 529 of the state of residence.

Once you invest in a 529 you give up investment discretion! You might be able to choose between several general portfolios, but once chosen you give up most of your options to direct the investments.

ckmk47 · « **Reply #2261 on:** December 01, 2016, 09:11:22 PM »

Quote from: ExGingi on December 01, 2016, 08:51:37 PM

That is true for NY residents contributing to the NY 529 Direct Plan.

Absolutely! I forgot. I'm from NY, isn't everyone?

Quote from: ExGingi on December 01, 2016, 08:55:16 PM

Once you invest in a 529 you give up investment discretion! You might be able to choose between several general portfolios, but once chosen you give up most of your options to direct the investments.

You can move the money around among the funds they have. And rearrange it periodically, but you're limited to their fund list.

I'm in it for the tax deduction. Each $10,000 deduction helps.

Do you have other ideas?

ExGingi · « **Reply #2262 on:** December 01, 2016, 09:39:46 PM »

Quote from: ckmk47 on December 01, 2016, 09:11:22 PM

I'm in it for the tax deduction. Each $10,000 deduction helps.

Do you have other ideas?

So you will settle for the NY Direct Plan regardless of whether you like it or not, for a benefit of $882 for every $10,000 contributed in a tax year? (I am assuming you are in the top bracket).

While I might or might not have other ideas, posting them here would be almost like one of the radio shows about finance and investing (just listen to their disclosures). These types of things depend on individual hard (circumstances) and soft (feelings and attitudes) facts.

ckmk47 · « **Reply #2263 on:** December 01, 2016, 09:45:54 PM »

Quote from: ExGingi on December 01, 2016, 09:39:46 PM

So you will settle for the NY Direct Plan regardless of whether you like it or not, for a benefit of $882 for every $10,000 contributed in a tax year?

I didn't realize I was 'settling'. In the area of education saving accounts, this is what I'm eligible for. The returns on some funds are good.
Is there something that I'm losing out on because I'm contributing to this?

ExGingi · « **Reply #2264 on:** December 01, 2016, 10:14:23 PM »

Quote from: ckmk47 on December 01, 2016, 09:45:54 PM

I didn't realize I was 'settling'. In the area of education saving accounts, this is what I'm eligible for. The returns on some funds are good.
Is there something that I'm losing out on because I'm contributing to this?

What I meant to say is that you can invest in the 529 of ANY state, but you will only get the tax deduction on the $10,000 if you invest in the NY state plan. All other benefits should be the same.

Would it be worth it to at least look at what other offerings are out there, rather than just go for what NY State offers? (ETA: based on a cursory online search, it seems like the NY plan is actually quite highly rated, so combine that with the tax savings and you might have a winner - if you like 529 plans).

Granted, the benefit here is immediate, so there's a good reason to take the ודאי benefit over any שמא advantages of other plans. I think you might also be able to roll over from one plan to another down the road.

ckmk47 · « **Reply #2265 on:** December 01, 2016, 10:31:15 PM »

Thank you.

stmark · « **Reply #2266 on:** December 02, 2016, 02:25:28 PM »

Any thoughts on KITE?

Adam101 · « **Reply #2267 on:** December 05, 2016, 08:30:31 PM »

Anyone playing COST or LULU before earnings?

springles · « **Reply #2268 on:** December 06, 2016, 12:55:35 PM »

Quote from: ExGingi on December 01, 2016, 02:30:41 PM

Coverdell is not only for college. They're also available for any other tuition or education related expense.

So if I can use coverdell for high school or even elementary school tuition why wouldnt I do it? If thats the case why doesnt every yeshivah tell the parents to do it? im paying tuition every year, I might as well get the tax benefit.

ExGingi · « **Reply #2269 on:** December 06, 2016, 01:00:56 PM »

Quote from: springles on December 06, 2016, 12:55:35 PM

So if I can use coverdell for high school or even elementary school tuition why wouldnt I do it? If thats the case why doesnt every yeshivah tell the parents to do it? im paying tuition every year, I might as well get the tax benefit.

The tax benefit is limited to the earnings being effectively tax free. There's also an income limit to qualify for Coverdell accounts. I am guessing that with the new administration we might see some changes.

springles · « **Reply #2270 on:** December 06, 2016, 01:14:31 PM »

Quote from: ExGingi on December 06, 2016, 01:00:56 PM

The tax benefit is limited to the earnings being effectively tax free. There's also an income limit to qualify for Coverdell accounts. I am guessing that with the new administration we might see some changes.

Its just the earnings from the account that are tax free, the investment in the account is taxed at regular rates?