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[Tyrone Slothrop]

Originally posted by TexLex
I agree with credit this, VM.

Who knows anything about the different college savings schemes and can explain to a financial idiot what the differences are? In the alternative, who knows of a good website that can do this? The grandparents want to give some money to the kid to invest for him and I need a place to put it. Thoughts?

-T(financial idiot)L

I looked at this not too long ago. Here is an article from the San Francisco Chronicle about 529s.

And here's an article from Morningstar in May about some 529s:

• Five 529 Plans with Stellar Investment Options
  
  This quintet of savings plans offers solid funds and flexibility.
  
  by Paul Herbert | 05-03-04
  
  Parents and grandparents might feel like pulling their hair out when choosing among 529 savings plans. They may find that their home state provides a meaningful break on April 15, but that its plan may charge too much in management fees, or in pesky administrative charges. Or perhaps it does not provide enough flexibility, or it is run by a program manager that has failed to put its shareholders' interests ahead of its own profits.
  But while all of these elements are important, no evaluation of a 529 plan is complete without scrutiny of its investment options. In some cases, a state's plan may be cheap for both in-staters and outsiders, and offer significant tax breaks to its residents, but lack either sufficient breadth in its investment lineup or high-quality investment options.
  
  Thus, before deciding where to open a 529 plan, investors should find satisfactory answers to two questions: (1) Does the plan offer investment options that are either structured to ensure proper allocation to stocks, bonds, and cash as a beneficiary nears matriculation, or does it offer enough a la carte options that I can do so myself? and (2) Does the program present me with enough offerings that are proven standouts within their asset classes on the basis of strong investment performance, expert management, and reasonable costs?
  
  As we've written in the past, asset allocation as a child or grandchild nears college age is a key issue. Some plans don't become significantly conservative over time, leaving open the possibility that a downturn in stocks could wipe out gains just before they're needed. Other plans simply don't give you enough options to design your own allocation. (This is a fair criticism of the plans offered by TIAA-CREF, one of the nation's largest program managers.) Finally, at least one plan leaves its managers so much flexibility that savers can't easily determine what their plan's actual allocation to stocks and bonds is at any given time.
  
  It's just as crucial to know whether a program offers topnotch funds. You can't count on state treasurers to have done the necessary due diligence to ensure that a 529 plan offers the best managers. Some seem to have chosen firms with local ties over those with the best investment vehicles. Fortunately, you can turn to tools such as the Morningstar Rating for funds and Fund Family Score to help determine whether a state has gone with heroes or zeroes. Furthermore, you can determine if a manager has done well by its shareholders by checking our Fund Industry Investigation Update table.
  
  After evaluating plans on such measures, we've come up with a list of five that stand out from the rest. Note that the managers of these plans also run programs in other states. If the investment options for the different programs featured many of the same investment choices, we decided to highlight the one with the lowest costs. We indicated the other states in the capsule discussions below, as their residents might reap tax benefits from keeping their college-savings money close to home.
  
  Alaska--T. Rowe Price College Savings Plan
  This plan offers a reasonably crafted age-based plan and four stand-alone offerings. The age-based offering devotes about 30% to stocks when a beneficiary is about ready to enroll in college. That's a bit aggressive, but you can augment that with the stand-alone fixed-income option, T. Rowe Price Spectrum Income RPSIX, one of the top multisector bond funds. Standout funds such as T. Rowe Price Blue Chip Growth TRBCX and T. Rowe Price Small-Cap Stock OTCFX are also holdings of the age-based plan. Other states with plans managed by T. Rowe Price: Maryland.
  
  Delaware--Delaware College Investment Plan
  One of three plans managed by Fidelity Investments, this one offers a fine mix of a suitable age-based option and quality stand-alone vehicles. The age-based portfolio places about 25% of assets in equities when a beneficiary reaches age 15, which we find reasonably cautious. The portfolios feature topnotch offerings such as Fidelity Dividend Growth FDGFX and Fidelity Short-Term Bond FSHBX. Plus, the fund offers three static portfolios for do-it-yourselfers. Other states with plans managed by Fidelity: Massachusetts, New Hampshire. Advisors and their clients should note that Fidelity also offers a broker-sold plan with New Hampshire.
  
  Nebraska--College Savings Plan of Nebraska
  Union Bank & Trust's program offers just about everything but the kitchen sink. It features four age-based portfolios, six target portfolios, and 21 individual funds. And rather than relying on the offerings from one manager, Nebraska's program offers a menu of solid funds from Vanguard, Fidelity, T. Rowe Price, and PIMCO. As the 529 industry evolves, investors may find more states taking the best-of-class approach to structuring investment options. Texas' advisor-sold plan, which features managers from Marsico Funds, Montag & Caldwell, PIMCO, and Wellington, is another strong a la carte plan.
  
  Utah--Utah Education Savings Plan Trust
  This is arguably the best plan around. It offers six stand-alone and three age-based investment options. The stand-alone options range from a very conservative offering that places 100% of assets in a money-market fund to a vehicle on the bold side that features a diversified mix of large-cap, small-cap, U.S., and international stocks. The most conservative of the age-based offerings devotes only 10% to equities when a beneficiary reaches age 13, which is very cautious. And the most-expensive offering costs just under 43 basis points, making this the cheapest plan around. Other plans managed by Vanguard: Iowa, Nevada, New York, and Virginia.
  
  Virginia--CollegeAmerica 529 Savings Plan
  The country's largest plan, CollegeAmerica, is run by American Funds, and is sold through financial advisors. The plan's investment lineup is made up of stellar options such as American Funds Washington Mutual Investors AWSHX, American Funds Capital Income Builder CAIBX, and 19 other funds, each of which is available on a stand-alone basis. The fund's age-based plan is also quite cautious, with 70% of assets devoted to bonds and money-market instruments when a beneficiary turns 13. The funds have been very popular lately, which has made asset bloat a concern, but to date the firm has managed growth well.