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I may be a little late replying to the question (is anyone still here?). But having just made some 529 investments over the last few months, I have a couple of ideas you might want to think about.

I strongly second the recommendation to read Hurley's book and look at the updated 5-star ratings of state plans on his web site. One thing you can do on the web site is see which institutional fund managers run which state plans. For example, I could see at a glance which state plans were managed by TIAA-CREF, which I happen to be very comfortable with because much of my retirement money has been going into TIAA-CREF funds for many years. That helped narrow things down to (if memory serves) about a dozen states. Others might be more comfortable with Fidelity or with Alliance Capital funds, for example, and might want to focus on the states that use them.

Past performance is pretty tricky when judging these state plans because most of them have only been operating for a short time. Past performance of the mutual fund managers, such as those mentioned above, is a much better guide.

One other point: since I live in Virginia, it was a no-brainer for me to set up one of my 529 accounts in that state plan because of the state-tax deduction. So unless your state plan is really bad, you might want to have one account in the plan of your the state in which you reside and another account in a state plan that may provide better investment options. My second account is with the New York plan because they use TIAA-CREF and offer a 100% equity option. Missouri also uses TIAA-CREF but their equity option included 20% international funds, which I didn't want because I already have some international exposure (also, I'm beginning to question the need for much international exposure in this increasing global economy, where companies like GE and Coke and most other major American companies already have a strong global presence).

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