Based on this fee chart, Utah’s 529 fees range from 0.100% for the Total US Stock Market to 0.200%. I’m considering a target date fund with a 0.114% fee. This feels high compared to equivalent funds in a 401k or IRA, which usually have much lower fees.
What’s the best option for someone wanting semi-passive growth? I don’t mind adjusting the allocation later, but is it worth paying these fees for the convenience of a “set and forget” approach with a target date fund until my kid starts using the funds?
If you’re not a Utah resident, you might want to consider other 529 plans. However, if you do live in Utah, the state tax deduction might make it worth sticking with the Utah plan.
@Isaac
The difference between a 0.02% fee (common for low-cost index funds) and 0.114% is about 94 cents per $1,000 per year. In the context of a 529 plan, that’s negligible, especially considering the administrative benefits.