April 23, 2009

The best and worst of 529 plans

Posted in Saving for College tagged , , , at 11:56 AM by Joe From Boston

The Wall Street Journal has a great new article that evaluates 529 plans, taking into account the current economic meltdown in a study by Morningstar Inc.

Here’s an excerpt:

“The report… found that several plans were caught off-guard when their investments in some of OppenheimerFunds Inc.’s bond funds reported sharp losses. In other plans, the asset-allocation mix in the popular “age based” portfolios — which turn more conservative as the child nears college — turned out to be riskier than expected.

Such factors knocked several well-regarded 529s off the best list this year, such as Illinois’s Bright Start College Savings Program, which had offered the Oppenheimer funds that imploded and still has money in them.”

To see the best and worst, click here to view the entire article.