Anyone recommend a good 529k account? and Upromise.

In My Humble Opinion
1

I use UPromise and it seems easy to just start one from there. Im sure my nephews will go to private colleges. Has anyone done some research on a good one?

2

There are some nice websites that have done an excellent analysis of the available 529s. They explain their features and whom they are open to.

All of the ones run by TIAA-CREF are given high marks because they have very low administrative costs (.65% or so, right now). Upromise doesn’t seem to offer any TIAA-CREF accounts. I haven’t made any investment choices there; I think they offer three companies but I haven’t checked them out. I’ve got about $50 in Upromise funds so I’m not sweating it yet.

I have, however, set up a separate 529 via my state (Michigan) which uses TIAA-CREF. It, like those of many states, are open to folks who live elsewhere.

3

I also use TIAA-CREF through the NY State plan. While the returns have been lackluster (and that’s being generous), unless you are a qualified investor and can invest in hedge funds, finding positive returns has been next to impossible these last few years.

4

Here’s a link.

  1. Depending on your location, you probably want to pick the plan authorized by your state so that you get the state income tax deduction, if available.

  2. While you can purchase your plan through your bank or broker, you will pay fees to do so. If you purchase directly through the broker that runs the state plan you have selected, you usually don’t pay fees (except for the fee the plan pays to the people who manage the plan which applies to everyone).

In Illinois, for example, the BrightStart plan gets you a state income tax deduction and is run by SalomonSmithBarney. (It gets a good rating from the site I linked to.) I called SSB’s number directly to get a prospectus, and then used it to select the investment option (growth fund/bond fund/etc.) I liked. By dealing directly with SSB, I bypassed the advisory fees my bank would have charged me for helping me to select my investment option, since I didn’t think I needed help.

Once my account was set up, I had no problem entering the account information at the upromise site, but I have not actually seen a transfer to the 529 account happen yet.

5

We are using ScholarShare, it seems very good.