Top 529 Plans For Your Child’s Education Per Kiplinger’s Magazine.

This month’s Kiplinger’s magazine has a list of what they say are the top five 529 plans that you should put your money in if your home state does not have an income tax deduction. I know Five Cent Nickel has talked about this recently, but I figured I would throw this out there for those of you looking for 529 information. We are going to need to start one of these accounts soon enough, so even if you don’t have kids yet, it’s always good to stay up to date on this info.

Best for rock-bottom fees: Utah Educational Savings Plan. Only charges 0.38% per year on the most expensive option.

Best portfolios of underlying funds: Maryland College Investment Plan, which uses a mix of T Rowe Price funds. (My fund company of choice). 0.99% annual cost.

Best for conservative investors: The Michigan Educational Savings Program which is run by TIAA-CREF. The returns are guaranteed based on the treasury note index and there is no annual fee. Good for those afraid of the stock market.

Best mix of choices: College Savings Plan of Nebraska which offers 20 funds from various companies. Because of all the different plans being offered, the fees are higher – 1.64% annually.

Best advisor-sold plans: Virginia CollegeAmerica which charges more fees than others, but the adviser can create a custom portfolio that works for you.

There are so many plans out there to choose from, so be sure you do your homework before signing up. I am just starting to look at these because we are planning on starting a family soon, so this find was pretty helpful as a starting point.

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