A 529 savings account is an efficient way to save and invest toward your child's future education expenses. The top 529 plans may also give you tax advantages, making them a smart choice for many families. With numerous investment options available, it's important to choose a plan that aligns with your financial goals and risk tolerance.
CNBC Select reviewed and analyzed more than a dozen 529 plans, comparing basic features like fees, expenses, and investment choices. Here are our top picks for Vanguard 529 investment options that offer competitive fees and a range of investment opportunities.
You have several options when evaluating the best 529 college savings plans. Here's a look at some of the leaders and what these accounts are best for. Vanguard is known for its low-cost index funds and exchange-traded funds (ETFs), making it a popular choice for investors seeking to minimize fees and maximize returns over the long term.
A 529 plan is a tax-advantaged account made specifically for education savings—like colleges, trade schools, and vocational schools. Vanguard offers a variety of investment options within its 529 plans, including age-based portfolios that automatically adjust to a more conservative mix as your child approaches college age.
Merrill Edge's trading platform is deeply integrated with parent Bank of America's banking capabilities, while Vanguard offers its mutual funds and ETFs directly to investors. Both platforms have their strengths, so it's important to consider your individual needs and preferences when selecting a 529 plan.
Self-Directed Trading has zero commission fees for stock, ETF, options trades; $0.50 per options contract. Robo Portfolios have zero management fees. These features can help you save on costs while building a diversified portfolio for your child's education savings.
Morningstar's manager research analysts annually assign forward-looking, qualitative ratings to a majority of the 529 education savings plans. This can provide valuable insights into the quality and performance potential of different 529 options, helping you make informed decisions about where to invest.
In general, Vanguard is focused on long-term, buy-and-hold investing. By contrast, Fidelity caters to investors who want a more hands-on experience. Consider your investing style and preferences when choosing a 529 plan that aligns with your financial goals and risk tolerance.
A brokerage account is a standard nonretirement investing account. You can hold mutual funds, ETFs (exchange-traded funds), stocks, bonds, and more. Vanguard offers a range of investment options within its 529 plans, allowing you to customize your portfolio based on your individual needs and preferences.
