Date: Wed, 17 Jan 2007 11:34:44 -0600
From: wyu@talisys.com
Newsgroups: misc.invest.financial-plan
Subject: Re: Is the 529 really necessary for college savings?
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OH charges 0.16% for their share of the fees. IL is supposedly going to
undercut that even more but no official unviling yet of the 2007
changes. I am funding a 529 (OH plan of course) but it's only a tiny
portion of my total portfolio so even if I have to take out the gains
and pay income tax+penalty, it's not really a big factor when
considering the entire universe.

joetaxpayer wrote:
> If we agree that the major benefit of the 529 is the tax free growth,
> but the cost is a minimum 40 basis points (.40%) as there are index
> funds at 10 basis points vs the 50 for the cheapest 529, that's about a
> 4% hit to the account. (say an average time invested of 10 years). This
> to avoid whatever cap gain rate is in place at the time of withdrawal.