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Steve, I take it you don't invest the 529 via a financial advisor so do you use NJ Best or do you have the 529 in another state's plan?
The reason I'm asking is because someone at work is looking to open one for his daughter and was shocked at the loads he'd have to pay if he went with the advisor driven Franklin Tempelton plan. I told him at the very least he should go with NJ Best (even though they're Tempelton funds but without the advisor fee). After talking to him though, it seems like he wants to put the money in a very conservative fund which may not have the huge gains (or losses) that an equity one would. I suggested that he might want to look at an out of state 529 plan that uses Vanguard as their fund family. My thinking is that since he may not have huge capital gains with such a conservative plan he would be better off with the lower expense ratios and paying the state tax instead. I haven't done the math so I'm not sure if it would be worth it but just wanted to know how you went about it.
The reason I'm asking is because someone at work is looking to open one for his daughter and was shocked at the loads he'd have to pay if he went with the advisor driven Franklin Tempelton plan. I told him at the very least he should go with NJ Best (even though they're Tempelton funds but without the advisor fee). After talking to him though, it seems like he wants to put the money in a very conservative fund which may not have the huge gains (or losses) that an equity one would. I suggested that he might want to look at an out of state 529 plan that uses Vanguard as their fund family. My thinking is that since he may not have huge capital gains with such a conservative plan he would be better off with the lower expense ratios and paying the state tax instead. I haven't done the math so I'm not sure if it would be worth it but just wanted to know how you went about it.
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