Comments on: The Worst 529 Plans – 2009 Edition

By: Heather

Heather — Fri, 12 Jun 2009 14:58:35 +0000

If we are investing in a “bad” 529 what should we do? We are investing through First Command (don’t get me started, we know how HORRIBLE they are) and have one plan through USAA. I don’t know what state First Command goes through but USAA goes through Nevada. We live in Virginia, but we are military so we probably won’t be here forever. What should we do??

By: Investing Made Simple

Investing Made Simple — Fri, 01 May 2009 16:11:06 +0000

Just FYI a great option if you are in one of these states and decide to go out of state are the West Virginia and Illinois 529 plans which uses Dimensional Fund Advisors. They offer outstanding fund options.

By: Rob

Rob — Tue, 28 Apr 2009 01:31:49 +0000

As a follow up to Justin’s comment about Wisconsin’s 529 program…as best I can tell Edvest = Tomorrow’s Scholar = Wells Fargo. I have a WI 529 through Edvest and had never heard of Tomorrow’s scholar until this article. But when I went to tomorrow’s scholar and tried my “Edvest” (really Wells Fargo) login, sure enough it worked. I’m not sure exactly what the relationship between Edvest and Wells Fargo is. They do offer a couple of Vanguard funds with lower expenses as well as Money Market and CD options, but otherwise CR is correct that the expense ratios are .79 and up.

By: Dylan

Dylan — Mon, 27 Apr 2009 22:39:38 +0000

I’m not surprised that NJ made the worst list. Even though there are no tax benefits, NJ residents may not want to entirely write it off. If you sock away only $300 per year for 12 years, NJ residents can get a $1,500 scholarship useable at any school in the state (public or private). The rest of your annual college savings can go into another, better state’s plan. Sure, you’ll pay more on that $300 due to the higher plan fees, but not even close to $1,500 more. Just don’t do more than the minimum to qualify.

By: Justin

Justin — Mon, 27 Apr 2009 19:42:19 +0000

Anyone reading this thinking they’d like to invest in Wisconsin’s plan should know the direct-sold EdVest plan (edvest.com) probably doesn’t rate as poorly as the Tomorrow’s Scholar program. It’s fee free to WI residents, and offers a state tax break. There are some decent funds to pick from, though not as many as other programs.