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The Best 529 Plans
By JLP | April 10, 2006
Since I wrote a little about 529 Plans the other day, I thought I would share this with you. According to the Morningstar FundInvestor newsletter ($), three of the best direct-sold 529 plans are:
Alaska T. Rowe Price College Savings Plan
Primary Fund Provider: T. Rowe Price
Asset-Based Cost Rank: Average
Cost of Age-Based Options: 0.87 – 1.03
Quality of Core Investment Options: Excellent
College Savings Plan of Nebraska
Primary Fund Provider: Various (click here for individual managers)
Asset-Based Cost Rank: Below Average
Cost of Age-Based Options: 0.69 – 0.97
Quality of Core Investment Options: Good
Primary Fund Provider: Vanguard
Asset-Based Cost Rank: Low
Cost of Age-Based Options: 0.25 – 0.41
Quality of Core Investment Options: Excellent
Topics: College Funding | 3 Comments »
April 10th, 2006 at 3:10 pm
Wish my state was among the best plans.
It does use T. Rowe Price, so I guess that’s my only option if I want the tax benefit. I’m still researching it though. I’ll post about it when I make a decision.
April 10th, 2006 at 9:30 pm
I am glad to see Utah’s plan is high rated. We just opened three accounts for our grandchildren.
July 9th, 2006 at 10:26 pm
I have invested in California’s Golden State Scholarshare for my three kids (2,4,6). I am concerned that the annualized return is not up to par (4-5%) or the investments would be better served in alternate investment vehicles. Scholarshare is moving from TIAA-CREF to Fidelity in October and states that more options will be available. Is there anywhere to find a comparison of annualized returns on 529 plans? or what is the average/benchmark annualized return for 529s? Any and all help is much appreciated.