An Overview On The Top Three States With The Best 529 College Plans
Everyone knows when you are talking about savings plans no 529 college plan has everything that you want. Some states plans are better in some areas than others. It’s just how they are made up. Most states will let you choose what accounts that you invest in directly. This really helps you if you’re good at investing. If not, maybe you should leave that up to an expert than. So, which states have the best plans? It all depends where you looking and what you want out of them. If you were looking to save money on fees than your best bet would be to go with the Utah Educational Savings Plan Trust. This plan has a portfolio of nine-index funds that charge only 0.38% per year. This plan also only charges 4.00 per 1,000 of your account balance. If you’re looking to save money on fees than this is probably your best option. Toss in the tax breaks you can also get and it makes perfect sense.
For the conservative investor the 529 college plan that Michigan has in place will definitely help you save money. The Michigan Educational Savings program is perfect for the investor who doesn’t really want to take a chance of putting his money in the stock market. This plan has a savings option that guarantees the principal and a minimum annual interest rate based on a treasury note. This plan is titled more towards bond funds than most 529 college plans. It also has low fees that make it ideal for the investor who doesn’t like to take a lot of chances with his money. Probably overall the best 529 college plan as a whole belongs to the state of Virginia. Their plan is more for the investor who fills comfortable putting their trust into an advisor. Virginia College America Plan will cost you more if you use an advisor, but in the long run it will be worth it. They can craft a portfolio with 22 top-notch funds from American Funds. Many people are using this plan as you can set it and just watch the investment grow. It seems many Americans have less time and this in an option they love.
The overview on 529 college plans is really straight forward as no one has the total answer. Many states have great plans in place while others are not so good. It depends a lot on what kind of plan you are looking for and how you would like the money invested. Some investors choose to take the stock market while others love the bonds and mutual funds. Each plan has its pluses and minuses just like anything else. More of the 529 college plans in each state are affiliated with a top investment firm so you know your money will be invested with the highest regard for getting you the most from it. As like any investment many factors will come into play. Such as taxes and what the state will allow under their different plans. Many states try to craft their plans to be the best this is why they are always changing. One of the most asked questions is: are you stuck with your own state plans? That’s a tricky question, as many states will let you use their plan even if you don’t live there. Some won’t so check to make sure before you invest any money at all. 529 college plans vary greatly so take your time and do your research into which state fits your needs the best. After you are done you will probably find out more than one state will do the job for you.