I have two children and each have a UTMA and 529 account. My understanding is that I should only keep equities in UTMA given the tax implications for bonds, and if I want bonds, place those in a 529. However, equities (and bonds) grow tax free in the 529. Won’t I lose out on significant tax free equity growth (assuming market growth) if I invest a significant % of 529 savings into a bond fund? It seems like I’d want more equities in the 529 to take advantage of tax free equity growth and bonds in the UTMA despite the interest yield tax implications.
Statistics: Posted by mikebogler — Sat Aug 10, 2024 8:55 pm — Replies 1 — Views 305