Ask Terry Questions Illinois bright start

Illinois bright start

By Terry Savage on May 13, 2017 | College Savings / Student Loans

Terry, Is there a better fund to invest money for grandchildren's education? I am with scottrade and can not decide if to pull out funds with go with scottrade. Dan

Terry Says

The way to invest in a 529 College Savings Plan is directly with the plan itself, avoiding any fees charged by advisors or brokers.  I am not a fan of the Illinois Bright Start Savings plan -- despite the fact that you get a deduction from state income taxes for contributions up to $10,000.   My reasons are historic, and I've detailed them before.  Their performance is ok, and your funds are kept separate from state accounts. (Let's not confuse this with the OTHER Illinois college plan -- the CollegeIllinois prepaid tuition plan.  I would avoid this at all costs because it is an unsecured obligation of a state that is rapidly going broke!) Instead I would go to Vanguard.com and invest in their 529 plan.  It has low costs, good investment choices.  And remember, you can invest in any state's plan -- and use the money for eligible college expenses in any state.

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