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Ohio’s Direct 529 Plan, offered by CollegeAdvantage, has earned the top 5-Cap Rating from Savingforcollege.com, an industry-trusted informational website which provides analysis and articles on 529 plans, financial aid, and scholarships, as well as tools to estimate college expenses.
CollegeAdvantage continues to be one of the few 529 plans nationwide to receive the 5-Cap Rating for both in-state and out-of-state residents. In fact, the Ohio Direct Plan was one of only four states to receive this dual recognition in the most recent ratings.
Savingforcollege.com awards their 5-Cap Rating to plans that offer” 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 rating is based on five criteria:
- The performance of the 529 plan;
- The costs of running the college-savings plan including expense ratios, administration and managerial fees;
- Special features such as a spectrum of age-based and risk-based portfolios as well as FDIC-insured options, participation in programs like Upromise and Ugift, and contribution restrictions;
- Reliability signals such as plan disclosure statements, the ease of making account changes, and the caliber of outside program managers; and
- Extra advantages like tax benefits for any account owner as well as additional tax breaks for state residents.
CollegeAdvantage Direct 529 Plan was also recognized by Savingforcollege.com in its most recent performance rankings. The performance score was determined by comparing seven similar asset-allocation categories between all the 529 plans, the historical performance of each selected portfolio category, and then averaging the score of all the groupings. The rankings were then based on one-year, three-year, five-year and ten-year performance scores.
The CollegeAdvantage Direct 529 Plan ranked tenth in the one-year category; fourth for three-year performance; sixth for five-year performance; and third in the ten-year performance category, as of Sept. 30, 2016.*
As Tim Gorrell, the executive director of Ohio Tuition Trust Authority stated, “We ask people to trust us with their resources and our ability to assist them in realizing their higher education goals; these rankings, based on respected independent industry analysis, demonstrates the credibility of our programs and encourages this principle of trust.”
CollegeAdvantage is proud to have earned these high ratings from this reputable investment research organization.
Interested to learn more about College Advantage, Ohio’s 529 Savings Plan? Then read more here. To set up a highly rated Direct Plan account with CollegeAdvantage, go here.
* Please note: The performance data underlying these rankings represent past performance and are not a guarantee of future performance.
Posted on January 6, 2017