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Author: 38Packard Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 8174  
Subject: I have a hard time justifying... Date: 12/27/2005 12:50 PM
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... contributions to a 529 account.

I have actively invested my 2 kids gifts to minors accounts (UTMA) for the past 10 years or so. Here are the numbers:

Account 1 Yr Return 3 Yr Return
Becky 20.18% 15.01%
Dan 17.54% 15.45%

My daughter is about to hit college age. She is currently a Junior in High School. My financial planner suggested that I fund a 529 account for each child to grow those savings tax-free.

However, when I downloaded the 529 Starter Kit from Fidelity, the Massachusetts U.Fund has limited investment choices, marginal returns, and high fees.

I am thinking that I may just fund a regular brokerage account (in my wife's and my name) that I can actively manage and pay the long-term capital gains taxes on those investments instead of the crappy 529.

Has anyone else done this research and come to the same conclusion? I'd appreciate any feedback on this.

Cheers!
'38Packard
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