If your state’s 529 Plan has benefits for in-state residents, it is often best to use your state’s 529 plan. See the table here for more information.

We have three major rules:

1. Pick an Individual Portfolio plan

2. Look for a plan with an expense ration less than 0.10%

3. Pick a plan that tracks a broad basket of US equities (e.g. S&P 500, Russell 3000).

Two reasons: they are more expensive and they have lower returns.