Which state''s 529 plan did you choose?

[Allisonfaye]

I am not sure if anyone can help me with this but I am researching 529 plans and it is extremely confusing. I remember meeting a Smith Barney person at a preschool fair a while back and they said certain state plans are better than others. It could take forever to research all 50 plans. I know I don''t get a tax deduction for going in my home state so I know it is better to go out of state and to pick one with low fees but other than that, what should I focus on? I want one that I don''t need to pay an advisor for or a commission. Does anyone have an suggestions?

 

[curlygirl]

Wow, I didn''t even know you could pick a plan from another state!! We just went with New York''s plan since that''s where we live and it seems to be doing well so far. I wish I had some advice for you but I guess I''m just more curious to hear what others have to say so I''m giving this post a bump!

 

[Daydreamer7130]

Here is a great article from this spring that shows the best and worst 529 plans.

http://news.morningstar.com/articlenet/article.aspx?id=234422&_QSBPA=Y

 

[curlygirl]

Daydreamer, thanks for posting that. Kind of disheartening that New York makes the "worst" list! I may have to do some more research on this now!!

 

[Clio]

When we first opened our 529 plans, we picked Utah. It has low costs and has consistently been rated pretty highly.

We lived in a different state at the time and knew that we would be moving soon, so we saw no reason to go with our state's plan (which was not very good).

Now, we're in a state where we plan to stay for a while, and the state's 529 has some nice tax benefits, so when we increase our college savings next month (no more preschool - yay!), we'll go with the plan for our state.

 

[Daydreamer7130]

Date: 8/4/2008 9:54:33 AM
Author: curlygirl
Daydreamer, thanks for posting that. Kind of disheartening that New York makes the ''worst'' list! I may have to do some more research on this now!!

You are very welcome! I''m from Ohio and they are always on the top of the list.

You may want to talk with a financial advisor and see if there are better ways to save for college other than a 529. I was thinking of some kind of money market or IRA-type (where you put money in for a very long time and then the kids or you can pull it out when needed) or look into the other states who have the best and see if you can join there.

Good luck!

 

[akw94]

Allisonfaye, I chose Illinois. I found some website that compared all the plans. You could choose 5 or 6 at a time and it provided a chart comparing your choices. I found that extremely helpful! I tried to choose a plan that wasn''t limited to going to school in that state, one with low fees, one that used the particular investment company I preferred and I can''t remember what other things were high on my list. I compared them all and coincidentally, ended up going with the state I lived in at the time.
Good luck choosing!

 

[Allisonfaye]

Date: 8/5/2008 4:46:27 PM
Author: dixie94
Allisonfaye, I chose Illinois. I found some website that compared all the plans. You could choose 5 or 6 at a time and it provided a chart comparing your choices. I found that extremely helpful! I tried to choose a plan that wasn''t limited to going to school in that state, one with low fees, one that used the particular investment company I preferred and I can''t remember what other things were high on my list. I compared them all and coincidentally, ended up going with the state I lived in at the time.
Good luck choosing!

Thanks. I guess maybe we will choose Illinois, too. Although I do not believe we get any tax break for doing so. Story of our lives.

 

[Allisonfaye]

Date: 8/4/2008 9:11:57 AM
Author: Daydreamer7130
Here is a great article from this spring that shows the best and worst 529 plans.

http://news.morningstar.com/articlenet/article.aspx?id=234422&_QSBPA=Y

Excellent article. Thanks so much for posting this. It''s a big help.

 

[diamondfan]

Allison, we set three up a few years back, but picked the one where you do not chose the state. It works that certain schools agree to participate, and once they say they will they must honor it. That way your child can go to any one of the schools on the list, assuming they get into the school. You can transfer it to someone else or get most of the money back I THINK, if your kid decides to go to one not on the list. Schools continually get added, there were tons last time I checked. This plan is more economical for my youngest than my oldest, who will be in college much sooner, but I think we took the 4 year option. I can find out more if you want. I was too nervous to limit it to one state, what if my kids did not like any of the schools in that state?

 

[pennquaker09]

Another option would be to open a Cloverdell account.