Ask Terry Questions saving for college

saving for college

By Terry Savage on April 03, 2014 | College Savings / Student Loans

what is the best plans for saving for college.

Terry Says:  What you want is the 529 College Savings Plan, where the money grows tax-FREE if used for college in any state, for any child in your family.  Each state has its own 529 plan, but you don’t have to invest in your own state plan (although some, including Illinois, do give a state tax deduction for money invested in the plan, up to certain limits).

What you want is a well-run, low-cost plan into which you can invest directly.  To find and compare plans, go to www.SavingforCollege.com.  Or if you’ don’t want to do that research, you can go directly to Fidelity.com or Vanguard.com and search for 529 plans.  They each manage plans for several states, and their performance is always above average and their fees are always among the lowest.

And if you do open an account, be sure to tell Grandma and Grandpa to contribute on every birthday or holiday!

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