College is expensive. If you are a parent, this reality probably weighs on your mind. It does mine.
529 Plans are a great tool to help save for your children’s college education. They provide some remarkable benefits.
Picking one out of many different options can seem daunting. But it doesn’t have to be.
When determining which 529 Plan you should choose, simply check out their
- Ratings (How does the plan rank against other plans?),
- Returns (Historically, how have these plans performed?), and
- Rewards (What benefits do they offer to in-state residents?)
Morningstar recently released their 529 Plan rankings for 2016. They are a good source for 529 Plan reviews. According to Morningstar, here are the top ten plans in 2016:
- Vanguard 529 College Savings Plan (Nevada)
- Utah Educational Savings Plan (Utah)
- Virgina529 inVest (Virginia)
- Maryland College Investment Plan (Maryland)
- T. Rowe Price College Savings Plan (Alaska)
- MOST Missouri’s 529 Plan (Missouri)
- Bright Directions College Savings Program (Illinois)
- CollegeAdvantage 529 Savings Plan (Ohio)
- CollegeAmerica (Virginia)
- Michigan Educational Savings Program (Michigan)
For the rest of the rankings, you can check out the full Morningstar article here.
When you are choosing a 529 Plan, consider how the plan ranks against other plans. Look at its performance over the past year, 5-years, and 10-years. If you are looking for another good source of information, consider savingforcollege.com.
Setting aside money for your child’s education today can help reduce their future financial burden. Start as soon as possible. Because before you know it, their acceptance letters will be in the mail.