In most states, that meant looking at the asset allocations within a savings plan's series of age-based portfolios. We preferred those that remain substantially in stocks until a child is at least in his or her early teens. We especially favored plans with multiple investment options, which increase the likelihood that you'll be able to tailor a plan to your own investment philosophy and tolerance for risk. Plans with low investment and administrative expenses got extra credit. We also weighed whether a state gives its residents added tax breaks for keeping their savings close to home.
Some states do both.
Finally, we considered a handful of lesser points, including whether a plan is open to participants of any age, whether it can be used for graduate school, whether there is a waiting period before you can make withdrawals and whether a state exempts assets in its plan from state financial-aid formulas. The top five Our top five savings plans are winners for residents and nonresidents alike. No place like home Because of generous state-tax breaks or other benefits, these plans demand a look by state residents, even though they're not among our top ten. Here are all 46 state plans, listed alphabetically by state. Included are both prepaid and savings plans-some states offer both flavors.