Where to put $5,000 now

What would you do with a million bucks? That's easy. But what about five grand? With a handful of broad goals in mind, here are Money Magazine's picks.

By Asa Fitch and George Mannes, Money Magazine

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Goal: Protecting your family

Best college savings plan: A 529 plan

With investment returns and withdrawals free from federal taxes, and additional tax breaks in many states, 529 plans are your best choice (so long as you sidestep pricey broker-sold ones).

Check to see if your state offers a tax break by visiting savingforcollege.com. If it doesn't, there's no penalty for using another state's plan.

Go with an age-based portfolio that dials down risk as your child approaches college age.

Michigan's low-cost 529, managed by TIAA -CREF, is your best bet if your state cuts no tax break.

It has age-based plans in three flavors: conservative, moderate and aggressive.

What would you do with $5,000?

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