Other details to consider when using 529 plans to save for college
Before you contribute to a 529 plan, you need to choose a specific plan to use. Not all 529 plans are the same, and you're not limited to the plan sponsored by your state.
Your state's plan is a good starting point if they offer specific tax incentives for 529 contributions. The savings are limited, however, so you need to consider the investment options within a plan too. You'll want to choose something with a range of options and one that offers funds with lower expense ratios to avoid your savings being eaten away by investment fees.
When it comes to choosing specific funds within the plan, you'll want to select one based on your child's age. Much like a target date retirement fund that you might find in your own 401(k), funds within a 529 plan usually slowly shift to a more conservative allocation as your child gets closer to needing to use the money for school.
If you're having trouble deciding how to invest for college, Synovus can help. Give us a call at 1-888-SYNOVUS (1-888-796-6887) to start the college savings conversation.5