Louisiana 529 Plan (1 Viewer)

[jrdbrn]

I started a 529 plan for my kids back in July. To date, I have $2200.03 in it with $2200 being contributed by me. Is this normal? Am I doing this wrong? I knew this was a more of a conservative savings for college, but jeez... making 3 cents in 5 months is wild.

I have 25% in Louisiana Principal Protection Fund and 75% in Vanguard Age-Based Moderate Track Fund

 

[efil4stnias]

I started a 529 plan for my kids back in July. To date, I have $2200.03 in it with $2200 being contributed by me. Is this normal? Am I doing this wrong? I knew this was a more of a conservative savings for college, but jeez... making 3 cents in 5 months is wild.

I have 25% in Louisiana Principal Protection Fund and 75% in Vanguard Age-Based Moderate Track Fund

is it the State plan or did you start one with a brokerage?

 

[SaintsBrazil]

That's just because your investment is small. I mean, had you put in $22,000.00 you would have earned 30 cents.

 

[jrdbrn]

is it the State plan or did you start one with a brokerage?

State https://www.startsaving.la.gov/

 

[jrdbrn]

That's just because your investment is small. I mean, had you put in $22,000.00 you would have earned 30 cents.

I like the way you think.

 

[Mr. Sparkle]

I started a 529 plan for my kids back in July. To date, I have $2200.03 in it with $2200 being contributed by me. Is this normal? Am I doing this wrong? I knew this was a more of a conservative savings for college, but jeez... making 3 cents in 5 months is wild.

I have 25% in Louisiana Principal Protection Fund and 75% in Vanguard Age-Based Moderate Track Fund

Check the transactions section in your account to see if they have recorded any deposits you've made or distributions into the account from the plan. That does not sound correct to me, although the market is pretty much back where it was in July, so maybe. But I wouldnt worry too much about 1 quarter in a 529 (unless your kid is 17-18).

I will say the Start website sucks and it is hard to find an up to date statement.

 

[efil4stnias]

State https://www.startsaving.la.gov/

Did you choose an investment strategy (aggressive vs conservative)?
Kinda sounds like your money is sitting in a money market account waiting to be invested.

 

[Tapxe]

I started a 529 plan for my kids back in July. To date, I have $2200.03 in it with $2200 being contributed by me. Is this normal? Am I doing this wrong? I knew this was a more of a conservative savings for college, but jeez... making 3 cents in 5 months is wild.

I have 25% in Louisiana Principal Protection Fund and 75% in Vanguard Age-Based Moderate Track Fund

If I understand it correctly, the % you earn on investments is based on your salary. So basically it's a tax haven but you won't get much if any interest unless you live near poverty level.

ETA: Looks like they've completely revamped the program since I researched it about a decade ago. There weren't options for different funds. It seems that has changed and now they just do the enhancements which are on the schedule below. Those numbers are better than before iirc, but they used to be all the additional funds you'd get as it wasn't truly and investment fund.

How is the Earnings Enhancement calculated?​

The actual amount of the Earnings Enhancement is calculated by multiplying the annual deposits to an account by the Earnings Enhancement rate applicable to the account category.

• For account Categories I, II and III, the Earnings Enhancement rate is based on the account owner’s reported federal adjusted gross income (AGI) for the preceding taxable year (the AGI for tax year 2010 will be used to calculate Earnings Enhancements for 2011 deposits), according to the following schedule:
  

  Reported AGI Rate	Earnings Enhancement
  $0 to $29,999	14%
  $30,000 to $44,999	12%
  $45,000 to $59,999	9%
  $60,000 to $74,999	6%
  $75,000 to $99,999	4%
  $100,000 and above	2%

• For account Category IV the Earnings Enhancements are based on the two percent (2%) rate.
• For account Category V, no Earnings Enhancement is paid.
• For account Category VI, the Earnings Enhancements are based on the federal AGI reported for the previous year by the beneficiary’s family and are paid to the same rate schedule as used for account Categories I, II and III.
• For account Categories I, II, III and VI that do not provide documentation of the federal AGI, the Earnings Enhancements are based on the two percent (2%) rate.

Earnings Enhancements are awarded annually and posted to individual accounts as of December 31 of each year.

 

[Saint_Ward]

Did you choose an investment strategy (aggressive vs conservative)?
Kinda sounds like your money is sitting in a money market account waiting to be invested.

That or after a couple days of heavy market losses, he's just near July levels.

 

[efil4stnias]

That or after a couple days of heavy market losses, he's just near July levels.

So in his edit he put the fund ...which on 7/1 was 35.69. Today it's 35.81. So depending on day he actually started it could very well be .03

It's a moderate growth fund so its gonna be a slowwww climb.

But if he puts 2k each year and has 10 to 15 years, it will shownsome returns. Won't be 200k, but something.

 

[superchuck500]

If it's "conservatively" invested it isn't earning dick right now because rates are so low. If it has market exposure, it was probably up a bit until fairly recently but market losses have been big over the last week or so.