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[quote=Anonymous]The 529 plan is the way to go for college savings. I recommend the NY plan (the way 529's are set up, the State's actually manage the investments). NY's plan gives you a lot of customization and has the lowest fees for management of the account. You can find it here: https://www.nysaves.org/content/home.html.  Studies show that over a decade or so (which is about your time horizon here) that the lowest fee investment strategies tend to have the best overall accumulation. The 529 really only benefits you because the money you invest can grow and be used on approved college expenses without having to pay capital gains taxes. If you don't end up using the money on college expenses (there are a lot of college related expenses it can go towards -- e.g., computer, housing, etc... -- so just try and you can use whatever you save) then there is a penalty (10%, I think) on top of capital gains tax for withdrawing it. You can pass any remaining money on to future generations, so if you don't use it--just let it sit and grow and pass it along as a gift to a grandchild (or needy kid you want to help out) one day.

Beyond the investment vehicle--the hardest part of saving for college is setting aside money each month for college. Once you set up the 529 plan, find a way to create an automatic system for depositing a certain amount each month into the account. There are lots of formulas for how much out there, but the key is to start with SOMETHING and then adjust based on what you feel comfortable doing.

Lastly, oversees education could be the way to go if it is much cheaper. US institutions, like health care providers, set the sticker price really really high and then discount it back for the desired students (i.e. smart or significantly different from the kids filling XX% of the seats already). US subsidies to colleges come in the form of federal loans (institution paid by government risk free, government has to collect from student), other countries subsidize education through direct grants that keep tuition prices lower.  We operate on the idea that kids should pay the government back directly for subsidizing their education. Other countries collect that debt indirectly through taxes on a graduate with a higher income (potential0 and creating a more educated populace creating a more dynamic economy .... a better theoretical model in my opinion, but i don't know if it actually works.

Good luck! and start saving now. [/quote]

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