Everyone needs a little help when it comes to saving money and planning ahead for college. With tuition costs and student debt increasing every year, it may feel daunting. But don’t give up hope. If you’ve ever wondered which college savings plan is right for your family and you, then you’ve come to the right place. We’ve looked around and investigated the best 529 plans out there so you can choose the right savings plan depending on your family’s finances.
What is a 529 Plan?
Every state in the US, including the District of Columbia, has some form of a 529 tuition savings and investments plan. Therefore, rules and returns vary by state. In some states, parents may begin investing in a 529 plan before their child is even born. The best 529 plans boast large returns. Many plans also go one step further by locking in tuition savings. Most of the plans don’t require you to be a resident of the state whose plan you choose to invest in.
The Best 529 Plans
Utah’s my529 Plan: This plan allows for aggressive investor choices, and is perhaps the most flexible to work with. This is one of the reasons why it is one of the top plans in the country. Utah’s my529 Plan also offers age-based investment tracks, so the money is readily available when you need it for tuition, fees, and any other necessities for college students.
Virginia’s Invest529: Another plan voted as one of the best in the country, Virginia’s Invest529 plan offers investments that regular retail customers do not otherwise qualify for. This is another plan with age-based portfolios and returns, and it boasts some of the best and most successful returns going, which means more money for your education and for a low-stress future. This plan offers competitive fees and sound advice for those who need it. If you are a resident of Virginia, you’re in luck—residents can deduct up to $4,000 in contributions per account.
Illinois’s BrightStart Direct-Sold College Savings Plan: This plan has been redesigned and updated, and can now boast some of the lowest investment fees in the country. Illinois’s BrightStart Direct-Sold College Savings Plan is extremely flexible and provides fair and sound investments not only for Illinois residents, but non-residents as well.
Nevada’s Vanguard 529: Nevada’s Vanguard 529 plan offers some of the lowest fees, so for those who are looking to save money while investing and saving for college, this one can’t be beat. It also offers numerous options to help investors make the most money on their investments.
Speak with an investments counselor as well as your counselor to see which 529 plan may be the perfect fit for you.