Which 529 plan is best for california residents
For the true DIY types, there is even an option to make a completely customized age based glide path. Not the absolute cheapest fees, but they have a history of reducing management fees every few years as the plan grows in size and the economies of scale improve. Why take the chance that your account is rebalanced right after a big market sell-off? Set an automatic monthly contribution and move on with life.
By the time college rolls around, the age based investment path has done its work, and the account balance is sitting in conservative investments ready to be used for college expenses. The investing timeline when saving for college is at most years, significantly shorter than when investing for retirement over a timeframe of years.
Remember that if you are reading this and live in another state, you will want to first check to see if your own state gives you a state tax deduction for contributions to your own state plan. For most people, the benefit of the tax deduction will usually outweigh the downside of a plan with slightly more expensive investment fees, at least until the limit of the deduction is reached. Overall, the ScholarShare plan has been a top-performing plan. The plan ranked 4th and 3rd for the 3- and 5-year periods ended June 30, , respectively, according to Savingforcollege.
Keep in mind, however, that this data represents historical performance, which is not necessarily indicative of future results. Scholarshare received a rating of 4. By Kathryn Flynn October 22, Recommended Articles.
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