Morningstar Names Best 529 College-Savings Plans

For those of you looking at 529 College Savings plans, Morningstar has released it's list of top ranked plans.  I utilize Morningstar as third party research in managing portfolios and screening for investment ideas.

For those of you new to the world of 529 plans they are used as a college savings vehicle in which contributions are made on an after tax basis in which assets grow tax free and withdrawals are made tax free for qualifying expenses such as tuition and books.  I personally own and manage several plans and like them for the following reasons:

1. Anyone can setup an account for a child, friend, family member, etc. (Great for grandparents)
2. Although each plan varies, there is usually a high contribution amount vs. other savings plans which only allow you to contribute $2000 annually
3. You can transfer accounts between children if necessary
4. Most plans offer a variety of investment options.  If you don't like your own state plan you can always choose another. 

Another good college savings vehicle is actually an IRA.  Either a Traditional or Roth offers qualifying college expenses as a withdrawal option.  This gives you more control in case your child or person you are saving for does not attend college.