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Greetings, 3seeds, and welcome. You wrote:

<<We've invested $500 for a Educational IRA in an index fund that charges $10/year. Now our state is going to begin a state-run college savings plan which we could invest quite a bit into each year. My question is: Are these state-run plans aggressive enough (our child is 2)for long term investors or would it be worth our while to continue with the E-IRA and manage the investment ourselves? Also, if we stop investing in the E-IRA, we're thinking we'll use the $500 to purchase stocks, pay the brokerage fee up front and avoid the yearly fee. OK idea? Thanks.>>

You may want to post this query on the Paying for College board at http://boards.fool.com/registered/messages.asp?id=1040017000000000 where these issues are discussed in detail. State plans vary, few are "aggressive," and usually they guarantee tuition only at a school within the state. As to the EIRA, the $500 cap on contributions virtually guarantee that the accumulation will barely pay for one year of education 18 years later.

Regards….Pixy

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