What to do with $1,000 now
Given the uncertain economic picture, you probably have a chunk of change squirreled away. Here's how to best use that cash.
Many 529s recently lowered the expense ratios they charge. Yes, you may get more tax pennies by using your own state's plan. But if its expenses exceed 0.5% for its age-based funds (which hold a mix of stocks and bonds tailored to your child's age), you may be better off elsewhere.
The five plans below offer solid investment options plus the lowest fees around. (The number accompanying each is the expense ratio for the least costly diversified aged-based fund available in the plan for a child currently age 4.)
For more info, go to savingforcollege.com.
1. ILLINOIS: Bright Start Savings (0.2%)
2. OHIO: College Advantage 529 Savings Plan (0.24%)
3. NEVADA: Vanguard 529 College Savings Plan (0.25%)
4. NEW YORK: 529 College Savings Program Direct Plan (0.25%)
5. CALIFORNIA: ScholarShare College Savings Plan (0.29%)
NEXT: Get more from your savings
