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Morningstar Picks Five Best 529 Plans
Morningstar issues its latest ratings. Here are the top five picks.
 
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Posted 11:19 AM EST March 06, 2007
Posted by: mkaz13
I completely agree with BigWednsdy...are you kidding...loaded funds? The article says, yes but it's good compared to other broker sold plans...but why buy a broker sold plan when there are so many excellent plans out there that are state sponsored and offer much lower fees and no loads. I'm really disapponted that Morningstar and Smart Money would offer up such poor advice.
Posted 9:27 PM EST March 05, 2007
Posted by: critchell
Before people start hamering Morningstar on load vs. no-load, keep this in mind. A 5.25 commission and low fees can be significantly cheaper than a no-load w higher fees. Next time you refinance your home, see the difference between higher interest rates and lower mortgage rates. Now examine the consistency of the portfolio in good and bad markets.Then you can sort out the winners and loosers.
Posted 5:09 PM EST March 05, 2007
Posted by: dsdesc
I'm with BigWednsdy. My state's plan (WV) has no loads and a reasonable variety of investments - but was beat out by funds that start you off at a disadvantage. In my mind, this article casts severe doubt on Morningstar's ranking ability.
Posted 9:21 AM EST March 05, 2007
Posted by: bpstreet
BigWednsdy and all, the point I got from the information contained in each plan's summary information is the fact that over time, the fees are low to reasonable. For me, I have many years before my children go to college and I want the plan that will give me the most by the time they go to school. If that means paying 5.25% up front with low fees moving forward AND I end up with more money than the folks paying low to no up front fees, then I was successful.
Posted 2:02 PM EST March 04, 2007
Posted by: arjay1
Once again, Morningstar shows no spine. Two of the top five have up front loads and fees that make it extremely hard to perfom well. But Morningstar caters to reps and their industry, thus the conflict-of-interest reccomendations.
Posted 12:31 PM EST March 03, 2007
Posted by: MSSHERRYBD7
MSSHERRYBD7@AOL.COM

HELP...I AM JUST STARTING TO PLAN A 529 FOR MY DAUGHTER OF 12YEARS. I HAVE A SON 18 AND IN COLLEGE NEXT YEAR AND TRYING TO DO BETTER THIS GO AROUND SINCE I WILL HAVE TO PAY SO MUCH OUT FOR MY SON.

WHAT DOES THIS 3.5% COME OFF OF YOUR INVESTMENT OR YOUR EARNED INTEREST ? AND DOES ANYONE KNOW IF S.C. OFFERS A GOOD PLAN
Posted 9:44 PM EST March 02, 2007
Posted by: BigWednsdy
The #1 529 Fund has a front end load of 3.5% and the number five Fund has a front end load of 5.25%? You have got to be joking!!
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