Utah's college savings plan managing more than $13B in assets

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  • Leeroy Jenkins Bountiful, UT
    Sept. 11, 2018 10:44 a.m.

    To augment both of your points, Kralon and Z, one can allocate their own index fund mix in the My529 plan (I know because I'm actively contributing to it). I agree with both of you that index funds are the most attractive option with historically the best yield.

  • Z South Jordan, UT
    Sept. 5, 2018 12:25 p.m.

    @Kralon, an index fund has a different focus than a tax-advantaged college investment fund. You are correct that for general investing, an index fund is often the best way to go. But there are specific tax advantages surrounding 529 plans when the money is used specifically for education, which boosts their effective yield.

    Sept. 5, 2018 12:17 a.m.

    Not withstanding the data presented in the article, $13 billion is a very small fund and should not be actively managed. The fees would best be minimized by investing in market index funds.

    I have worked at brokerage firms, hedge funds and mutual funds. All of them traded more than $13 billion per day and only one was considered a large fund.

    The odds are against Utah's college saving plan continuing to be competitive. Index funds would provide a reasonable return with less cost and lower risk, especially if market index fund diversification and a small amount of contrary hedging is used.