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3w📚 Education
New parent here, want to start saving for college ASAP. NJ doesn't give a state tax deduction for 529 contributions. Should I use the NJ NJBEST plan anyway or pick a different state? I keep hearing about Utah's my529 and Nevada's Vanguard plan. What are other desi parents doing?
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Since NJ has no state tax deduction for 529, you're free to pick any state's plan. The best options: 1. **Utah my529** — lowest fees, best Vanguard index fund options, most recommended by Bogleheads 2. **Nevada Vanguard 529** — also excellent, slightly higher minimums 3. **NY 529** — only worth it if you pay NY state taxes (deduction up to $10K) I use Utah my529 for both kids. Age-based aggressive portfolio (90% stocks when they're young). Contributing $500/month per kid. At 7% average return, that's roughly $180K by age 18. Pro tip: ask grandparents in India to contribute via gift — up to $18K per grandparent per year is tax-free. My parents send $10K/year per kid from India.
Don't forget: you can also use 529 money for K-12 private school tuition (up to $10K/year). If you're planning to send kids to a private school, start the 529 early and use it for both school AND college.
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