NY 529 Educational Plan intrest rate?

[hisrisingstar]

Hi, sorry to make a post so close together. I was just curious, is there a way to find out what intrest I am getting back from my NY 529 plan? I am on an aggressive portfolio, and have college funds for both kids. I am just wondering if I am getting more back from my 529 or my ING direct account.

Comments

[jenni_goes_grrr]

it should be on the statement they give you

[hisrisingstar]

Hmm, I have looked all over my account online and cant find it. I havent recieved a paper statement for it.

[soldiergrrrl]

You might want to call them, then, and ask where you can find that information.

Do they have contact information on the monthly statements?

[hisrisingstar]

Hm, I have never recieved a monthly statement from them, am I supposed to?

[soldiergrrrl]

That type of information should be in your monthly statements. I know that our Vanguard account give us the interest in each monthly statement, so I'm guessing that the others would work the say way.

I'm not familiar with a 529, but if the ING is a savings account, and you've got an aggressive portfolio, it's probably not pulling in more money than your investment accounts.

One of the LJ investing coms might have more targeted information, or a google search might help find at tool to compare them.

[hisrisingstar]

I have tried to find it online and havent been able to, and I have not recieved any statements for the account.

[scearley]

that's a difficult question, because 529 accounts are leveraged to prevent tax liabilities. That's something you have to take into account when you consider interest - the amount of tax you would be paying when you pull out of the ING as opposed to the 529.

Plus previous interest rates aren't a reliable marker for future gains.

[hisrisingstar]

How do I determine gain in the long run, like over the course of 18 years?

[scearley]

you can't - you can only hope that the managers are going to maintain the same or beter rates than they have been getting. For the most part 529 plans are more conservative than other plans, but it should be in the 4-7% range growth per year.

Assuming you mean the ING bank account, and not some particular fund they're pushing, the 529 plan will give you more money in the long run than a bank account. Not only in interest but also because bank accounts incur taxes.

[hisrisingstar]

Thanks for the info! Its the ING bank account, but I dont think our contributions to the 529 are enough to make a difference in our taxes because we dont itemize our deductions.

[jennifer0246]

2.7%

[hisrisingstar]

Thank you, where were you able to find that?