Ins and Outs of 529 Plans
What is the Money Date? A weekly time to check in. 3 things we review and update: 1. Spending 2. Earning 3. Savings
Review of all 529 plan options
- Top plans
- Your state vs other plans?
- Fees vs Performance
Best Low Fees: Utah (My529) – Vanguard investments
Best portfolios of underlying funds: The pre-fab portfolios offered by 529 plans are only as good as their underlying mutual funds. That’s why we like the Maryland College Investment Plan.
Best plan for conservative investors: The Michigan Educational Savings Program, run by TIAA-CREF, is ideal for investors who shy away from putting their college savings into the stock market. The plan has a savings option that guarantees principal and a minimum annual interest rate based on a Treasury note index. Those options cost a very low flat fee of 0.45% annually.
Best mix of investment choices: For do-it-yourself investors who want to build their own portfolio, the College Savings Plan of Nebraska offers a selection of 20 funds from American Century, Fidelity, PIMCO, and Vanguard.
Quick note: Changes to 529s with the Tax Cut and Jobs Act of 2017. You can now use up to $10K of 529 money for K-12 tuition-related expenses per year.