Monday, February 13, 2006

College 529 Plans

About a year and a half ago, my daughter was born. Naturally, my first thought was to get her college savings plan started. I researched the 529 plans available, which seemed like the best savings vehicle.

You can choose to go with any State's Plan. If your state offers tax breaks, you probably want to go with your home state. But my state did not, so I chose to go with Utah's plan. It is administered by Vanguard, so the fees were among the lowest in the country. It also had a variety of investment options, while some plans only had a few options.

SmartMoney recently graded the 520 Plans, and I was pleased to see Utah in the top 3 picks. This is by no means an endorsemnt of that plan. I am just illustrating the methodology I used to pick a plan for my daughter.

You can read the article, and if you haven't started one of these for your kids, I would recommend doing so.


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