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Thread: OT - Any financial planners for 529 experts?

  1. #1
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    OT - Any financial planners for 529 experts?

    I am going to open a 529 college savings plan for my neice as a Christmas present. I will be using my current brokerage, Fidelity Investments, to do this. I am a resident of Arizona, my neice is a resident of Maryland. The advisor at Fidelity said to open an Arizona State 529 since I am the "participant (account owner)" even though she is the "beneficiary" of the plan. Does this sound correct? Are there Federal and possible State tax savings implications of this arrangement vs. looking into a Maryland 529? Does it even matter?

    Thanks for any help.

  2. #2
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    Personally, I hate paying a broker, or advisor, for advice. I guess it's worth it if you believe it is.


    Check for yourself:


    http://www.az529.gov/acpe_csp_default.aspx?pageid=17

    http://www.collegesavingsmd.org/

    http://www.collegesavings.org/

  3. #3
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    Quote Originally Posted by frostlich
    Personally, I hate paying a broker, or advisor, for advice. I guess it's worth it if you believe it is.


    Check for yourself:


    http://www.az529.gov/acpe_csp_default.aspx?pageid=17

    http://www.collegesavingsmd.org/

    http://www.collegesavings.org/
    Thanks. I don't pay for the advice with Fidelity. It is a discount brokerage.

  4. #4
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    Quote Originally Posted by jetstream23
    I am going to open a 529 college savings plan for my neice as a Christmas present. I will be using my current brokerage, Fidelity Investments, to do this. I am a resident of Arizona, my neice is a resident of Maryland. The advisor at Fidelity said to open an Arizona State 529 since I am the "participant (account owner)" even though she is the "beneficiary" of the plan. Does this sound correct? Are there Federal and possible State tax savings implications of this arrangement vs. looking into a Maryland 529? Does it even matter?

    Thanks for any help.
    jetstream, I am not an advisor but I can tell you that each State has its own plan and own tax advantages. My current state of New Jersey, for example, had no real state tax advantages as far as deductions so I decided to choose a State plan where I liked the investment options and where the costs were low (I chose Utah). You can choose any State plan you want (there are no restrictions as far as where they have to attend school or anything like that). Other States, however, do have tax advantages if you live in that State so its best to do some research on your State plan. If the advisor is telling you to do it in Arizona, its very possible you will be able to recognize some advantages. As far as your neice being in Maryland, it doesn't matter.

  5. #5
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    Quote Originally Posted by LesterLyles
    jetstream, I am not an advisor but I can tell you that each State has its own plan and own tax advantages. My current state of New Jersey, for example, had no real state tax advantages as far as deductions so I decided to choose a State plan where I liked the investment options and where the costs were low (I chose Utah). You can choose any State plan you want (there are no restrictions as far as where they have to attend school or anything like that). Other States, however, do have tax advantages if you live in that State so its best to do some research on your State plan. If the advisor is telling you to do it in Arizona, its very possible you will be able to recognize some advantages. As far as your neice being in Maryland, it doesn't matter.
    Thanks. Just spoke to Fidelity and he mentioned several of the things you did. I'll be opening an Arizona 529 for her.

  6. #6
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    Quote Originally Posted by jetstream23
    Thanks. Just spoke to Fidelity and he mentioned several of the things you did. I'll be opening an Arizona 529 for her.
    I've got 3 529's for the kids through Fidelity and there's something else you should consider.

    If you open a credit card account with Fidelity and link it to the 529's, 1.5% of everything you purchase will go into the 529's. We consolidated all our credit cards to this Fidelity card and we stopped using our ATM cards for things like groceries and gas. So almost all our monthly cash/charges go onto this Fidelity card and it's built up a nice chunk of tax-free change towards their educations.



    http://personal.fidelity.com/plannin...efhp=pr&ut=B16

    SAR I

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    Vanguard > Fidelity

    ask your question here:

    www.diehards.org

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