If you do open up the 529, can you let me know if you see something that looks like a money market? I looked at my NY 529 and its almost all stock and bond portfolios as well as one other that has part of it in a money market but a handful of other things as well. I too am just looking for somewhere extremely safe to dump some cash in the short term for college that gets the best return.ThanksI’m sure the 529 will have money market type funds. So you’ll save $100 a year (per child/beneficiary), so $200 a year for the next 4, and $100 a year for the next four. All growth will be tax free as well, so long as the money is used for higher education.So if I'm understanding correctly...Az529.gov you have the ability to deduct $4k a year.I meant the brokerage account at Fidelity.A 529? Yes, what state are you in?Thanks guys. You gave me some different options to explore. I do have a fidelity 401K thru work with investments in a brokerage link account. I assume the account you mentioned above is something set up outside of that account.
But yeah for 529s I'm in Arizona.
529 contributions are like Roths where your contributions are after tax. Disbursement of principal and gains are tax free. For the state portion you also can deduct up to $4k per year. Which in AZ is now a 2.5% flat tax or $100 max on the $4K.
My only concern with a 529 is I can't afford the market to go sideways/down as I’ll need the funds each year after I put them in. My plan is to put away $750 every two weeks which is $19,500 a year. I'm going to start in the next month or so and will have to pull out roughly $8,500 in August and again in January. Repeating the same process for the next 4 years and probably something similar for the 4 years after. I'm thinking a 4-5% savings account might be the safest/best return I can get given the short term nature and lack of risk because I can't lose any $ that's needed to pay the school bill.