Which are the best college saving programs out there?

Question

I'm interested in starting a college fund for my son but don't know which program to consider. Any advice?

Answer 1

If you are saving for college expenses, you should take advantage of federal tax breaks aimed at families saving and paying for college. These include the following:

Qualified Tuition Programs (529 plans)—Earnings grow tax-deferred and distributions are tax-free when used for qualified post-secondary education costs.

Coverdell Education Savings Accounts— Earnings grow tax-deferred and distributions are tax-free when used for qualified post-secondary education costs. May also be withdrawn tax-free for primary and secondary school expenses.

You can read about these at
http://www.savingforcollege.com/

Answer 2

If you are in the US, I think the 529 plan is the best.