I have Heard 529 Plans Are A Good Way To Save For College. What Are The Best 529 Plans.

An article was recently posted on CNNMoney on this topic. For parents saving for their children's college education, a 529 savings plan still makes sense- as long as it offers good, low-risk investment options and doesn't eat up too much in fees. There three make the grade.

Best Low- Risk 529 Plans

Illinois

Fund: Illinois Bright Start College Savings Program -- Direct-Sold Plan

Web site: brightstartsavings.com

Expenses: 0.20% to 0.63%

Low-risk option: Principal protection fund, up 2.5% last year

What it offers: Some excellent Vanguard age-based index-fund options that cost as little as 0.20%Ohio


Fund: Ohio CollegeAdvantage Savings Plan

Website: collegeadvantage.com

Manager: Fifth Third, Pimco, Vanguard, others

Expenses: 0.19% to 0.91%

Low-risk option: Fifth Third CDs (a 10-year yields 5.0%)

What it offers: Low-cost age-based and balanced funds, plus a broad array of safe options



Utah

Fund: Utah Educational Savings Plan

Web site: uesp.org

Manager: Vanguard, others

Expenses: 0.22 % to 0.35%

Low-risk option: FDIC-insured savings (a one-year CD yields 1.9%)

What it offers: Eleven options, including age-based index funds for varying risk levels.

Remeber the sooner you start saving the better.