ok, can someone summarize what are my options? (I'm getting confused
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thank you.
1) Harvest the LT gains yearly if you are in the $0 Bracket - Pay $0 taxes
2) Invest the money in a 529 Plan - Pay $0 taxes for qualified distributions. Use the cash you would've otherwise used to replenish the account. (+ you might be able to claim a state deduction - Not worth a ton of money...)
3) Donate the appreciated stock to charity (if you would've given cash otherwise) - Pay $0 taxes, get full FMV deduction. Use the cash you would've otherwise used to replenish the account.
Side note, I commend you for thinking about investing for the future. You are way ahead of of the game if you do this early enough!
Just curious, why not go with FXAIX? as far as I know it's the cheapest S&P index fund. Truth be told, it doesn't really matter as the expense ratios are extremely low. I'm just wondering what made you go with SPY.