SHORTCUTS

529 Plan Details:

Enter your state:

World's Simplest College Calculator:

How old is your child?

Find a 529 Pro:

Enter your zip code:

Enroll In a 529 Plan:

View a list of participating plans

OPTIONS

COMMUNITY

Just released: Latest 529 plan 5-Cap Ratings
http://www.savingforcollege.com/articles/just-released--latest-529-plan-5-cap-ratings-1005

Posted: 2017-03-10

by Kathryn Flynn

Top-rated plans as of December 31, 2016

About the 5-Cap Ratings

In addition to our 529 Plan Performance Rankings, Savingforcollege.com also assigns a 5-Cap Rating to plans to help investors evaluate their college savings options. Each quarter, scores are assigned based on a variety of factors, which we separate into four categories: Performance, Costs, Features, and Reliability. There is also a "Resident Upgrade" score to reflect any additional benefits offered to residents of the plan's sponsoring state. Ratings for advisor-sold plans assume that the higher cost structure is justified by the professional advice, due diligence and time savings a financial advisor can provide.

How it works

Each plan's category scores and the "Resident Upgrade" score are computed on a scale of 1 to 5. We use a weighted averaging algorithm to calculate the overall 5-Cap Rating. Each plan's category score and overall Rating are featured on its Plan Details page, so that individuals are able to weight each factor, such as historical investment performance, based on their own circumstances and preferences.

Separate scores are calculated for residents and non-residents of each sponsoring state, since many states offer special benefits for residents who invest in their 529 plans. In fact, over 30 states, including the District of Columbia, currently offer a state tax credit or deduction for 529 plan contributions.

It's important to note that while we do employ a mathematical formula to calculate these scores, a significant portion of our analysis is subjective, and the Rating does not assess every aspect of a 529 plan, its management, or future investment performance.

Click here for more information on how we calculate the Ratings.

Top-rated plans as of December 31, 2016

A plan with a Rating of 5 Caps offers outstanding flexibility, attractive investments, and additional economic benefits (such as generous tax incentives) that can offer a substantial boost in savings for some investors. There are few, if any, weaknesses in these programs. The plans listed below currently have a resident and/or non-resident rating of 5 Caps.

    Final Score
State Program Non-resident Resident
Alaska University of Alaska College Savings Plan 4.5 5
California The ScholarShare College Savings Plan 5 5
Colorado Scholars Choice College Savings Program 4.5 5
Colorado Direct Portfolio College Savings Plan 4 5
Illinois Bright Start College Savings Program -- Direct-sold Plan 4.5 5
Iowa College Savings Iowa 4.5 5
Maine NextGen College Investing Plan -- Client Direct Series 5 5
Michigan Michigan Education Savings Program 4.5 5
Nebraska Nebraska Education Savings Trust - Advisor College Savings Plan 4.5 5
Nebraska Nebraska Education Savings Trust - Direct College Savings Plan 4.5 5
New York New York's 529 College Savings Program -- Direct Plan 5 5
Ohio Ohio CollegeAdvantage 529 Savings Plan 5 5
South Carolina Future Scholar 529 College Savings Plan (Direct-sold) 5
South Carolina Future Scholar 529 College Savings Plan (Advisor-sold) 4.5 5
Utah Utah Educational Savings Plan (UESP) Trust 4.5 5
West Virginia SMART529 WV Direct 4.5 5
Wisconsin EdVest (Direct-sold) 4.5 5

Top-rated plans as of December 31, 2016

About the 5-Cap Ratings

In addition to our 529 Plan Performance Rankings, Savingforcollege.com also assigns a 5-Cap Rating to plans to help investors evaluate their college savings options. Each quarter, scores are assigned based on a variety of factors, which we separate into four categories: Performance, Costs, Features, and Reliability. There is also a "Resident Upgrade" score to reflect any additional benefits offered to residents of the plan's sponsoring state. Ratings for advisor-sold plans assume that the higher cost structure is justified by the professional advice, due diligence and time savings a financial advisor can provide.

How it works

Each plan's category scores and the "Resident Upgrade" score are computed on a scale of 1 to 5. We use a weighted averaging algorithm to calculate the overall 5-Cap Rating. Each plan's category score and overall Rating are featured on its Plan Details page, so that individuals are able to weight each factor, such as historical investment performance, based on their own circumstances and preferences.

Separate scores are calculated for residents and non-residents of each sponsoring state, since many states offer special benefits for residents who invest in their 529 plans. In fact, over 30 states, including the District of Columbia, currently offer a state tax credit or deduction for 529 plan contributions.

It's important to note that while we do employ a mathematical formula to calculate these scores, a significant portion of our analysis is subjective, and the Rating does not assess every aspect of a 529 plan, its management, or future investment performance.

Click here for more information on how we calculate the Ratings.

Top-rated plans as of December 31, 2016

A plan with a Rating of 5 Caps offers outstanding flexibility, attractive investments, and additional economic benefits (such as generous tax incentives) that can offer a substantial boost in savings for some investors. There are few, if any, weaknesses in these programs. The plans listed below currently have a resident and/or non-resident rating of 5 Caps.

    Final Score
State Program Non-resident Resident
Alaska University of Alaska College Savings Plan 4.5 5
California The ScholarShare College Savings Plan 5 5
Colorado Scholars Choice College Savings Program 4.5 5
Colorado Direct Portfolio College Savings Plan 4 5
Illinois Bright Start College Savings Program -- Direct-sold Plan 4.5 5
Iowa College Savings Iowa 4.5 5
Maine NextGen College Investing Plan -- Client Direct Series 5 5
Michigan Michigan Education Savings Program 4.5 5
Nebraska Nebraska Education Savings Trust - Advisor College Savings Plan 4.5 5
Nebraska Nebraska Education Savings Trust - Direct College Savings Plan 4.5 5
New York New York's 529 College Savings Program -- Direct Plan 5 5
Ohio Ohio CollegeAdvantage 529 Savings Plan 5 5
South Carolina Future Scholar 529 College Savings Plan (Direct-sold) 5
South Carolina Future Scholar 529 College Savings Plan (Advisor-sold) 4.5 5
Utah Utah Educational Savings Plan (UESP) Trust 4.5 5
West Virginia SMART529 WV Direct 4.5 5
Wisconsin EdVest (Direct-sold) 4.5 5
 

Reset email successfully sent.
Please check your inbox.

Close
page loadtime mark

Advertisement


close