8 Worst 529 College Savings Plans of 2020
Morningstar announced updates to its analyst ratings for 61 of the biggest 529 college savings plans in the U.S. earlier this year. These plans represent 97% of the more than $363 billion in 529 plan assets as of Aug. 30. In 2020, Morningstar manager research analysts awarded three Gold ratings, 10 Silver ratings, 22 Bronze ratings and 18 Neutral ratings to 529 college savings plans. Eight plans received Negative ratings, six in downgrades. (Related: Best 529 College Savings Plans of 2020: Morningstar) Negative-rated plans have at least one major flaw, such as a subpar asset allocation approach or exorbitantly high fees, and are unlikely to provide a typical 529 college savings plan participant with a compelling investment experience relative to alternatives. Check out the gallery for the eight funds to which Morningstar gave a negative rating. --- Related on ThinkAdvisor:
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