Vision Capital Management Financial Advisor Portland Oregon

Vision Capital Management has been providing clients financial planning and investment management services since 1999. Visit our site to find out more.

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      • Christopher Anissian, APMA®
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May 29 2025

15 Things to Know about College Savings Plans (with Special Oregon 529 Plan Tips)

The 529 Plan is the most popular college savings plan available. We have identified 15 things you should know in order to get the most out of a 529 Plan, with a focus on Oregon 529 Plans.

1. What Is a 529 Plan?

A 529 plan is state-sponsored investment program to help families save for college tax-free.

There are two types of 529 plans:

529 Education Savings Plans

These plans work like a 401(k) in that your savings can be invested in stock or bond mutual funds and any earnings grow tax-free. Educational expenses such as tuition, room and board, supplies, and even computers can be paid using these funds. 529 College Savings Plans are the most common type of plan, and the money can be used for schools in any state. Thinking about college overseas? 529 College Savings Plan can be used with some international schools as well.

529 Prepaid Tuition Plans

Fourteen states have 529 Prepaid Tuition Plans (Oregon does not). With a prepaid tuition plan, you can prepay all or part of an in-state public college education. The benefit is that you can lock in tuition at today’s rates, however, you must be sure that your child will be attending a public, in-state university for this to be a good option.

2. Why Use a 529 Plan over Other Plans?

There are three reasons to opt for a 529 plan for education savings:

Tax-free investment growth and withdrawals

There are no federal income tax benefits associated with a 529 plan contribution. However, your investment grows tax-deferred and qualified withdrawals are federally tax-free and state tax exempt as long as they are used for qualified education expenses.

State tax benefits

Thirty-four states offer tax deductions or credits on contributions to 529 plans, including Oregon. Click here to see the tax benefits associated with the Oregon 529 College Savings Plan.

Estate planning

The unique advantage to 529 plans is that the value is transferred out of your estate, yet you retain full control over the account as an owner. This can be an important estate planning tool for grandparents who are looking to reduce their estate taxes at death.

3. When Should I Open a 529 Plan?

We recommend you begin saving as early as possible as tax-free, compounding investment returns are powerful. Investing $100 a month from birth will give your child $43,000 for college, assuming a 7% rate of return. If you were to start saving when your child is 10, that number drops to less than $13,000.

4. What Kind of Investments Are Available?

529 plans are invested in a portfolio of mutual or index funds and they are managed by the state or an outside manager such as Fidelity, TD Ameritrade, Vanguard and many others.

5. Shop Around and Pay Attention to Fees

Depending on the investment manager, fees can vary according to the type of investment funds the manager uses. The fees may include advisor fees, program management fees, maintenance fees, and investment manager expense fees. Some states offer low-cost index funds and other states only offer actively managed mutual funds, so it pays to shop around, especially if your state does not offer a state tax deduction for contributions. State plans can be opened in most other states, and you can roll a 529 plan to a different state once every 12-month period, with some exceptions Additionally, some states and program managers may offer incentives in the form of a fee waiver if you opt to fund your account with direct deposit.

6. Two Primary 529 Investment Strategies

There are two types of 529 plan investment strategies: age-based or static funds.

Age-based, or target date funds

Age-based or target date plans automatically adjust your asset mix toward a more conservative allocation as your student approaches college age. This means that you start with a higher allocation to stocks when your child is younger and, by the time they reach college age, the assets are more heavily invested in cash and bonds. Using this type of automatic adjustment may be right for you if you do not have the time or knowledge to manually adjust the account’s asset mix. It’s important to note that these age-based shifts from aggressive to conservative may not happen fast enough if the market hits a period of volatility.

Static funds

The “static” option means that you hold an investment fund or portfolio of funds that maintain the same allocations over time.

7. Custodial Account

A 529 account is managed by a program manager: either the state or a third-party investment firm. The funds are held in a custodial account, meaning that your money is protected even if the state or third-party has financial issues.

8. The Investment Strategy Is Important

Diversification is an important risk management tool. Most 529 plans offer an investment strategy using U.S. stocks and bonds as well as international investments. Make sure you fully understand the specific investment options and their associated risks.

9. Private School Tuition Now Allowed

There have been several changes to college savings plans in recent years, including tax-free withdrawals for private, public and religious school tuition, up to $10,000 per year (formerly used to be $10,000 total). However, not all states recognize this benefit so some withdrawals could be taxed at the state level.

10. Understand the Basic Rules

  • Both state and federal rules apply to 529 Plans.
  • There can only be one owner and one beneficiary for a 529 account.
  • You can own more than one 529 account.
  • The student can be a beneficiary of more than one 529 account as long as the aggregate contributions don’t surpass the state’s account size limit. This limit varies by state and ranges from $235,000 to $575,000.
  • Anyone can contribute to a 529 Plan account, not just a parent.
  • The account owner may change the beneficiary, and some states permit the account owners to name a contingent beneficiary.
  • Some states allow the account ownership to transfer to the beneficiary in the event the account owner dies.
  • Plan holders may roll over $35,000 per beneficiary to a Roth IRA if the 529 plan is overfunded. Contributions in excess of $19,000 for single filers and $38,000 for couples filing jointly may be subject to gift taxes.
  • Be sure to consult your tax advisor to make sure you have not exceeded the annual gift tax exclusion limits.
  • For non-qualified withdrawals, earnings are subject to federal income tax and a 10% penalty.

11. Does the 529 Plan Affect My Financial Aid Options?

In general, 529s have a minimal impact on financial aid, but it depends on if the account is owned by the parent, grandparent or student. Broadly speaking, parent-owned 529 Plan accounts are treated favorably by the federal financial aid eligibility formula (maximum 5.64% rate) as well as financial aid income limits. A distribution from a 529 Plan to pay college expenses is not considered a “base-year income” that would reduce next year’s financial aid eligibility. It is important to remember that federal financial aid rules are subject to change, and you should confer with your accountant on the particulars of your situation.

12. Great Option for Grandparents

Grandparents can support a grandchild’s college education while benefiting from specific tax treatment. Any contributions up to $19,000 qualify for annual gift tax exclusion (and up to $95,000 in one year as long as no additional contribution is made over the next five years. The $95,000 maximum can become $190,000 for a married couple filing together, which is referred to as front-loading or superfunding the plan). Any contributions are removed from their estate, thus reducing any potential estate tax liability. Depending on the state, they may also be eligible for state income tax deductions.

In addition, if grandparents are the owners of a 529 account, the funds will not impact financial aid eligibility.

13. Time Limits on Withdrawals

529 Savings Plans do not have specific withdrawal or age requirements. Prepaid Tuition Plans, however, may have time limits for withdrawals.

14. Roll Overs

Every state allows for one rollover to another 529 plan per year without triggering tax penalties. However, you may have to repay state tax deductions or pay a fee if you go from an in-state plan to an out-of- state plan.

15. Prioritize Retirement

It is important that you don’t sacrifice your retirement savings for college savings. There are no scholarships and loans available for retirement and the biggest gift you can give your children is not relying on them for financial support in retirement.

Have questions about college savings plans? Have specific questions about 529 Plans specific to Oregon? Get in touch with us.

Sources: IRS, Kiplinger, Saving for College

Written by Liz Swagerty Olsen · Categorized: 529 PLAN, CHARITABLE GIVING, ESTATE PLANNING, FINANCIAL PLANNING, OREGON, PARENTING · Tagged: 529 college savings plans, 529 plans, COLLEGE SAVING, COLLEGE SAVINGS PLANS, education savings, FINANCIAL PLANNING, grandchildren, PORTLAND OREGON FINANCIAL PLANNER

May 20 2025

Financial Literacy for the Next Generation

https://vcmi.net/wp-content/uploads/2025/05/GinaFinancialLiteracyfortheNextGenerationmp4.mp4

Gina Jacobson, CFP®, CDFA, shares ways to encourage financial literacy for the next generation of your family.

Written by Liz Swagerty Olsen · Categorized: ESTATE PLANNING, FINANCIAL ADVISOR, PARENTING

May 05 2025

Video: Reminders during Heightened Market Volatility

 

 

Matthew Sheets, CFP®, shares important factors to remember during times of heightened market volatility.

Written by Liz Swagerty Olsen · Categorized: ECONOMY, INVESTMENT MANAGEMENT, INVESTMENTS

Apr 28 2025

Smart Money Moves for Moms at Every Stage

Motherhood changes everything—from your sleep schedule to your daily routine, and most importantly, your financial priorities. Whether you are preparing for your first child or managing the costs of children at college, money plays a significant role in how you plan, grow, and support your family. The good news? With the right financial decisions, moms can gain more control, reduce stress, and build a strong future for their families. Here is how to make smart money moves at every stage of motherhood.

1. New Moms: Building the Financial Foundation

  • Budget for Baby – The arrival of a baby brings new expenses: diapers, daycare, medical bills, and more. Create a baby-specific budget that accounts for both one-time costs and ongoing monthly expenses.
  • Start an Emergency Fund – Unexpected costs are part of parenting. Aim to build an emergency fund with 3–6 months’ worth of living expenses to protect your family in case of job loss or surprise medical bills.
  • Review Insurance and Estate Plans – Now is the time to update your life insurance and name a guardian for your child. Make sure your will, health directives, and beneficiaries are all up to date.

2. Moms of Young Children: Maximizing your Income and Savings

  • Evaluate Childcare Costs – Childcare can rival a mortgage in cost. Explore flexible work options if possible and open tax-advantaged accounts like Dependent Care FSAs. Some moms find it cost-effective to adjust work schedules to minimize full-time daycare, but every situation is unique to each family.
  • Start Saving for College Early – College may seem far off, but starting early gives your money more time to grow. Consider opening a 529 college savings plan, which offers tax-free growth when used for qualified education expenses.
  • Invest in Your Career – Whether you are returning to work or balancing a side hustle, keep your skills sharp. Continuing education, networking, and certifications can lead to better job opportunities and income.

3. Moms of Tweens and Teens – Modeling Behavior and Planning Ahead

  • Teach Kids About Money – This is the perfect time to introduce your kids to smart financial habits. Give them a weekly allowance, open a savings account, and let them practice budgeting for small purchases.
  • Revisit Long-Term Goals – With more clarity around your family’s lifestyle and future, review your retirement plan, homeownership goals, and college savings. Prioritize your retirement—after all, loans can help fund college, but not retirement.
  • Control Lifestyle Creep – As your income increases, resist the temptation to overspend. Stick to your core values and invest in experiences, savings, and security, rather than material things.

4. Moms of Young Adults – Shifting Roles, Staying Secure

  • Support Without Sacrificing – You may want to help with college, a first apartment, or even a wedding—but be cautious not to derail your own financial stability. It is okay to set boundaries while still offering support.
  • Downsize or Reorganize – This might be a suitable time to reevaluate your home, car, or other big expenses. If your kids are becoming independent, you might consider downsizing or repurposing your budget for new goals like travel or business ventures.
  • Update Your Financial Plan – Life changes fast. Make sure your estate plan, retirement contributions, and insurance policies reflect your current life stage and future goals.

Empowered Moms Make Confident Moves

Money does not have to be a source of stress—it can be a source of empowerment. Every mom, no matter her income or life stage, can take meaningful steps to create a more secure financial future for herself and her children. Start small, stay consistent, and seek the advice of a financial planner to help you plan for the bigger picture.

As mom and the family CFO, you are not just managing money — you are shaping your family’s future.

Contact us today to discuss these ideas and others with a financial planner.

Written by Liz Swagerty Olsen · Categorized: FINANCIAL PLANNING, WOMEN · Tagged: FINANCIAL PLANNING, financial planning for women, money moves, money moves for moms

Apr 23 2025

Gina Jacobson Makes Second Appearance on “Wait. Hold Up… What?” Podcast

Client Relationship Associate, Gina Jacobson, CFP®, CDFA, was a recent guest on the podcast, “Wait. Hold Up… What?”. Gina spoke with host Dawne Hanks on the episode about women building their nest and their net, and in this episode, they discuss consumerism, ethics, and financial empowerment for women.


The podcast “Wait. Hold Up… What?” is from the women at Eliminate Girl Hate, an organization that provides programs that leverage the power of the female experience to create growth in all areas of business and life by providing information, resources and support with the mission of creating safe and equitable spaces for all who identify as a girl.

Written by Liz Swagerty Olsen · Categorized: WOMEN

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