West Virginias SMART529 WV Direct plan, available only to state residents, performed the best over a one-year period ending June 30. Nebraskas College Savings Plan of Nebraska performed the best over a three-year period.
The rankings look at overall performance, not of individual portfolios.
SavingforCollege Founder Joe Hurley said the rankings are meant to help families narrow down their list when picking a plan, but shouldnt be the sole criteria, as fees and in-state tax benefits should also be considered.
Certainly plans can hit a hot streak or cold streak, Hurley told the Associated Press. Typically, you dont want to be chasing short-term performance.
While only 9% of families use 529 plans, those who do have an average of $7,964 to pay for college, according to a recent study by Sallie Mae.
Plans with the top one-year performance were West Virginias SMART529 WV Direct, Nebraskas College Savings Plan of Nebraska, Kansas Learning Quest 529 Education Savings Program, Nebraskas TD Ameritrade 529 College Savings Plan and Kansas Schwab 529 College Savings Plan.
Plans with the top three-year performance are Nebraskas College Savings Plan of Nebraska, West Virginias SMART529 WV Direct, New Mexicos The Education Plan's College Savings Program, Rhode Islands CollegeBoundFund and Virginias Virginia Education Savings Trust.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.