According to the nonprofit College Savings Foundation, assets in 529 college savings plans reached approximately $52.3 billion by the end of 2004. That's almost a 50 percent increase from 2003. And the growth is expected to continue—at least two research firms expect assets in these plans to grow to $145 billion by 2008.
Yet the increased popularity of 529 plans has also brought more regulatory scrutiny. The Securities and Exchange Commission has created a task force to examine the fees and disclosure policies of 529 plans, and the National Association of Securities Dealers issued an Investor Alert last year that attempts to educate investors on how to compare 529 plans. In response, individual states plan to incorporate voluntary guidelines into their program materials later this year to make it easier for investors to compare the features of different state plans.
For additional help in comparing plans, Morningstar, which first began ranking 529 plans last year, recently compiled its list of the top three direct-sold plans and the top three advisor-sold plans (as well as the five worst 529 plans). And in a nod to advisor-sold plans, Morningstar reports that about 80 percent of all 529 plan assets are invested in advisor-sold rather than direct-sold plans.
Forefield offers a current listing of all 529 college savings plans, direct-sold and advisor-sold, as well as a listing of all 529 prepaid tuition plans. To view them, click on the links below:
529 Plans: Ad_070507Sold State Savings Plans
529 Plans: Direct-Sold State Savings Plans
529 Plans: Prepaid Tuition Plans