Maryland resident here.
We'll be opening some 529 plans for our kids (ages 4.5, 2.5, and 1), and I'm wondering how to determine if we're better off with the in-state plan or another state's plan.
We're planning to save a minimum of $70,000 for each child (although we may invest more heavily) to fund a mix of community college and off-campus living at in-state public schools. Of particular interest is NY's plan, as I like the expense ratio and Vanguard investment options. Some details:
- Investments by TRowe Price
- 0.81% expense ratio
- $2500 tax deduction/kid (~5% state tax rate)
- Past performance ~6.5% (I know this doesn't predict future returns)
- Investments by Vanguard
- 0.16% expense ratio
- No tax deduction
- Past performance ~8.5% (I know this doesn't predict future returns)
Thoughts on how to determine the preferable plan?