The New York plan did not rank among the Top 5. Kiplinger's liked California's plan because it offered strategies for parents who wanted something in addition to an age-based portfolio. Beginning in July, the California plan allows participants to pick a 100-percent stock plan. Or you could invest money in only socially responsible stocks, say companies that do not profit from gaming or tobacco. Or you could opt for a guaranteed investment option where the principal cannot be lost and the minimum return is set at 3 percent.
Parents can pick an age-based approach or other options when the money is first set aside.
They cannot switch between accounts as the child gets older. I'm hoping Michigan will take a cue from some of the more creative approaches and offer parents even better options. After all, college savings is all about giving our children more options.