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Reply to "Which is the best 529 plan in VA?"
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[quote=Anonymous]I don't know the VA plans because I live in MD. But in general, pick the one that looks like a tax-sheltered mutual fund. In many states, the tuition pre-payment plan will build a lower-than-market expected rate of return into your monthly payments (because colleges don't want to assume much risk with respect to future tuition hikes and market performance). This may be unfair to the VA plan, so do your own investigating, but it seems to be a fairly common practice among pre-pay tuition plans. Most states allow you to use pre-paid tuition at any other college, so that's not the issue. The issue is that your investment returns in the tuition pre-payment plan will probably be lower than the market returns in the mutual-fund-like plan.[/quote]
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