Best College Plan Savings
December 3rd, 2005
When planning for college, it is important to know what the best college plan savings accounts are. But, the best college plan savings account for one person is not necessarily the best college plan savings account for another. You need to carefully define your college savings goals in order to decide what the best college plan savings account for you is. A good financial advisor can recommend some of the best college plan savings accounts for you to choose from.
Choosing the best college plan savings accounts
The best college plan savings account for you is one that will help you achieve your college savings goals. Some 529 plans are among the best college plan savings accounts. But, it is important to know that not all 529 plans are alike. Some 529 plans are not the best college plan savings accounts because of their low performance.
Examples of 529 College Savings Plans compared
Below is the comparison of the returns yielded by some of the most popular college savings accounts or 529 plans in 2002. The returns are negative because 2002 was a pretty bad year for investments. In comparison, the S&P 500 returned -22.10% in the same year. From the chart below, which 529 Plan is the best college plan savings account for you?
| New York College Savings Plan | -16.5% |
| Bright Start Savings (Illinois) | -18.4% |
| College America (Virginia) – aggressive allocation | -11.4% |
| -16.1% | |
| College Savings Plan of Nebraska – aggressive allocation | -20.7% |
| -16.1% | |
| Unique College Investing Plan (New Hampshire) – Portfolio 2018 | -18.2% |
Bear in mind that some years, most of the 529 plans or even the best college plan savings accounts will have negative returns. If you cannot handle the volatility, then the best college plan savings accounts for you are the most conservative, fixed income only, low returns accounts. Before deciding on the best college plan savings accounts for yourself or your family, make sure you understand all the rules, advantages and disadvantages of the college savings plan you are interested in.
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