Wed 31 Jan 2007
Random Thought: Which 529 Plan Should I Choose?
Author: William Wallets in Investing , College , Random Thought |
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Recently, I was deciding whether or not I wanted to invest in a 529 plan. The jury is still out, and I definitely plan to write a post regarding 529 plans, but I thought I’d share a neat little website with you.
Saving for College is a great resource that discusses the pros and cons of each state’s 529 plan and rates them. This is a great site to use for deciding which 529 plan is best for you, if you’ve decide to invest in one.
Popularity: 10%
January 31st, 2007 at 10:03 am
Looking forward to your post on the pros & cons. I can’t figure out if it’s too late for me to start with them or not, since my son is pretty old already.
February 4th, 2007 at 10:53 am
That was a great site for me when I was researching for my newborn son. After looking at several states, I finally settled on the Ohio plan, with its low costs and different Vanguard index funds to choose from, as I don’t get any better benefit by going with the plan in my state. The other favorite I read about was Utah, but I liked the ability to adjust the level of investment in several different index funds with the Ohio plan rather than just stuck with a diversified stock or S&P 500 option with Utah.
Blunt, as for whether you should do this, even if you go in for only a short period, whatever you make would be tax free, so there is almost no downside. If you are looking at a short period (only a couple of years), go with a conservative option to reduce any risk of loss. You may decide that it’s just not worth the hassle, but since you are going to use the money anyway, and the plans make it very easy to sign up, you should look at the possible benefits before deciding it’s too late.