Wipfelder wrote: kalvano wrote: AVBucks4239 wrote:
star fox wrote:Good post. Do you have kids/are you planning?
Yes. Hoping for two kids after we get married this May. Plan is to keep bumping up HSA contributions so as much medical care as possible is pre-tax. Fiance also hates clutter and plans for the baby showers to be gender neutral and loaded with "need" stuff rather than wants.
Once you have kids, I highly suggest utilizing a 529 plan for college savings. If you live in a state with a state income tax, you can reduce your tax burden by quite a bit by utilizing the 529 for your state.
Of course, if your state's 529 plan sucks, then the lower returns may not be worth the tax trade-off.
Also, you're going to have a rough go of it if you hate clutter with two kids.
I think you can use any states 529/ESA. IL has a good one, that I use for my kids, I think it's one of the best.
You can use any state's 529. However, if your state has a state income tax, you can often deduct contributions to the 529 if you use your state's plan. For instance, I'm in Texas and have no state income tax (which is good because our 529 ssuuuuccckkkksss), so I use NY's 529 plan (great returns). If I lived in NY, I could deduct up to $10,000 per year if I contributed $10,000 from state income taxes (I believe - I tend to gloss over it, but that sounds about right).
If you don't have to worry about taxes, or your state's 529 is so bad that it isn't worth it, NY and Utah have some of the best plans, with ultra low fees.