Because our state does not provide any tax benefit for 529 contributions, the high fees associated with our state's plan (broker-sold) made it a poor option. Since I wanted a low-fee plan, I looked at Vanguard, USAA, and Fidelity. Vanguard has some great plans; however, they had account maintenance fees and requirement for a large initial investment. USAA's plans were OK, but not great. Ultimately, we went with Massachusetts's 529 U.Fund Plan for the following reasons:
- Since they are not broker sold, we don't have to pay any load to investment advisors.
- The overall fee structure is competitive. In particular, they do not charge an account maintenance fee;
- I like the investment options;
- We have accounts at Fidelity and their service has been very good over the years; and
- Our Fidelity Amex Card earns us 2% Cash Back which I will direct into the fund.
We started our fund with $500 and a $50 per month investment.