05 May Finding Best 529 Plans for your relatives education
You should first check that the state you reside offers you tax break and more importantly how big is it for the year of investment. If your state offers a very small amount of tax break and the plans charge relatively high fees or your state only allows a relatively small amount to tax break then you should find another state that offers better investment returns.
If your state offers a poor return plan you should value the investment returns more that than the tax break you will receive for the first year you invest. As the returns for the amount is for the duration of the investment (typically many years), while the tax break is only for the first year or year of the investment.
What is the right thing to do?
Know how your state’s plan compares with the financial market returns for the same period.
Know what fees are assessed by the plan.
Compare your state plan’s investment returns with the top return achieving plans in the country.
Remember it is your money!
We at N2I, offer you no fee assessment/selection of 529 plans so you can take out advisor based plans which take additional fees from you. You can invest directly using what to/where to invest advice offered by us.