Morningstar releases new 529 college savings plan ratings
The college year now in full swing, Morningstar Inc. has released its ratings of top Section 529 savings plans based on expected risk-adjusted performance into the future. With total assets in the savings vehicles reaching $214 billion as of Sept. 30, up 18% from last year, advisers are taking note.
Out of 64 plans studied (which hold about 95% of all assets in 529s), eight reached the top two echelons: four golds (“best in breed”) and four silvers (“notable advantages”). Three plans got a negative rating because Morningstar sees “at least one major flaw” in them that could seriously damage long-term returns. [In alpha order by rating. Ratings not included here were bronze and neutral.]