Morningstar Ranks Top College Savings Plans
BOSTON (MainStreet) -- Across the country, states are offering college savings vehicles known as 529 plans.
Similar to 401(k) plans, the offerings allow money to be invested on behalf of a child's college expenses. Like a retirement plan, contributions benefit from compound interest.
|Alaska, Maryland and Ohio are among the states with top-rated 529 college-savings plans.|
Morningstar (MORN), a leading provider of independent investment research, has issued its annual research study and ratings based on an analysis of the nation's largest 529 plans.
Its mutual fund analysts evaluated the quality of the portfolio of investment options; the investment options' performance; the skill of the options' managers; the stewardship practices of the 529 plan's administration; and the costs associated with the plan. They then assign ratings of "Top," "Above Average," "Average," "Below Average," and "Bottom." 529 plans getting a "Top" rating incorporate the industry's best practices, including solid investment choices at a fair price.Six plans got "Top" ratings this year: Alaska's T. Rowe Price College Savings Plan and the Maryland College Investment Plan, managed by T. Rowe Price (TROW); Nevada's The Vanguard 529 Savings Plan, managed by Upromise; Ohio's CollegeAdvantage 529 Savings Plan, managed by Ohio Tuition Trust Authority; Utah Educational Savings Plan, managed by the agency of the same name; and Virginia's CollegeAmerica, managed by American Funds. Participants can invest with any of the geographically based and municipally managed plans, although certain tax breaks and incentives may not apply to out-of-state residents.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV