We have helped many of our clients set up college savings 529 plans for their children and grandchildren. These plans are usually the “go-to” solutions for college savings, since they offer unbeatable tax advantages and almost total flexibility in school selection.
So when investment consultant Morningstar just named their top choices among the nation’s 529 plans, we were gratified to see several of our favorite plans at the top of the list.
At the very top was Utah’s Educational Saving Plan, run by Vanguard, which is one of our top picks for extremely low costs and straightforward investment index options. Another top choice is Virginia’s College America Plan, run by American Funds, which features the full range of American Fund’s outstanding load-waived investment options and among the lowest fees in the actively-managed fund universe.
The Takeaway: 529 plans are a great way for parents and grandparents to save for college, and are one of the very few tax-free options left. If you are not using a 529 to save for college, you could be losing hundreds or thousands of dollars in taxes and potential financial aid. To see if a 529 plan is right for you, give us a call to discuss your options.