There are many ways you can save for your child’s college education — but Clark’s favorite way is with something called a 529 plan. These are tax-free plans that are operated by states or educational institutions to help families set aside funds for future college costs.
Are you throwing your money away?
However, not all 529 plans are the same. If you’re not careful, all the money that you’re putting in to your 529 plan could be going nowhere. You may end up with even less money than you started with!
Direct sold plan
You need to look for what is called a direct sold plan. Direct sold plans are bought directly from the fund company instead of through financial advisors. The difference in fee charges between direct sold and advisor sold 529 plans can be significant so you’ll want to keep that in mind when trying to save money.
Read more: Best 529 plans to help pay for college