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Millionaire Kids Ezine, Issue #001 -- Saving for College
January 17, 2007

Saving For College is EASY...With these 529 Plans

If you're not taking advantage of saving for college with 529 plans...then you're missing out on some FREE money from Uncle Sam!

A state 529 college savings plan is best described as a 401(k) for college.

It's a simple plan that lets you put aside money regularly, invest in mutual funds or index funds, and watch the earnings grow tax-free.

What do you need to know about each 529 plan?

1) Do you get a tax break?

2) Where can you buy it?

3) What are the expenses?

But you have to be careful, because some state 529 plans are better than others.

The good news is: it doesn't matter if you live in that state or not...you can still enroll in the best 529 plan.

Here are the 3 Best College Savings 529 Plans that I've found:

1) Alaska

* Plan: The University of Alaska College Savings Plan and its nationally-branded twin, the T. Rowe Price College Savings Plan

* Open to: All

* State tax break for residents: None

* Manager: T. Rowe Price

* Performance of 80% equity portfolio: 7.85% 1-year, 8.84% 3-year

* Costs: $30 annual fee waived for automatic contributions and accounts over $75,000

* Expenses: 0.3% annual asset management fee, plus annual expenses for underlying investments of 0.49% to 0.73%

2) Nebraska

* Plan: College Savings Plan of Nebraska

* Open to: All

* State tax break for residents: Up to $1,000 of contributions may be deductible

* Manager: Union Bank and Trust

* Performance of 80% equity portfolio: 8.32% 1-year, 9% 3-year

* Costs: $20 annual fee

* Expenses: 0.6% annual asset management fee, plus annual expenses for underlying investments of 0.09% to .4% for age-weighted portfolios, 0.05% to 1.01% for other portfolios

3) Nevada

* Plan: The Vanguard 529 Savings Plan

* Open to: All

* State tax break for residents: None

* Manager: UPromise Investments

* Performance of 80% equity portfolio: 7.86% 1-year, 3-year not available

* Costs: $20 annual fee on accounts below $3,000

* Expenses: Annual asset management fee included in the expenses for underlying investments of 0.6% to 0.81%

Saving for college can be a breeze if you take advantage of 529 plans! Sonja

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