College costs keep going up.
But the best 529 college savings plans, which let parents put money into an account that provides tax-free earnings and withdrawals, can help families prepare for the cost, according to a new Morningstar report.
The highly regarded investment research company looked for plans with reasonable costs, well-diversified investments, lots of choices for parents and expert management.
The Best 529 Plans The Illinois Bright Start College Savings Program is a reasonably priced plan that allows parents to choose all-index or actively managed age-based options.
The Maryland College Investment Plan allows parents to customize their plans using five portfolios that offer low fees and top-tier funds.
The Virginia Education Savings Trust and Virginia CollegeAmerica 529 Savings Plan feature highly involved managers, a wide array of mutual funds and low fees.
The Colorado Scholars Choice College Savings Program has a good division of growth and value strategies, decent cost and a stellar group of managers.
The Worst 529 Plans
The Ohio Putnam CollegeAdvantage has suffered from poor fund performance and high manager turnover.
The Mississippi Affordable College Savings Program and Mississippi Affordable College Savings Advisor Program have limited options and a big management.
The New York 529 College Savings Program doesn't invest in international stocks. So when the U.S. market heads south, there's no foreign market buffer.
The Nebraska AIM College Savings Plan charges relatively high annual fees for growth-tilted portfolios.
Go to Savingforcollege.com to learn more about 529 plans.
interest.com