my529 Makes The Grade For 2019
Salt Lake City— my529 again finds itself at the head of the class after earning top marks from Morningstar’s annual breakdown of 529 plans published Tuesday. For the ninth year in a row, my529 has earned the coveted Morningstar Analyst Rating™ of Gold, and Utah’s 529 plan was one of four plans to receive the Gold rating.
Morningstar Research Services LLC, a leading provider of independent investment research, is a subsidiary of Morningstar Inc.
The report by Morningstar’s Manager Research Group is the equivalent of an industry report card for 529 plans. The analysts evaluated 62 plans nationwide for oversight, underlying investment quality, fees, performance and the asset allocation strategy for the age-based portfolios. Morningstar said that the Gold-rated plans, also hailed as “The Valedictorians,” follow industry best practices, offer robust investment options and low fees, and satisfy residents and non-residents.
“Utah’s my529 is set up to serve investors well for the long haul,” said Madeline Hume, Morningstar manager research analyst for multi-asset and alternative strategies, in her October 22, 2019, report.
Morningstar noted the recent change in my529 leadership, as former executive director Lynne Ward departed in early October but called new executive director Richard Ellis an “experienced financial steward.” Ellis, my529’s senior director for compliance, finance, and investments since 2015, previously served as Utah state treasurer for two terms.
“The Morningstar rating is a great accomplishment for our team,” Ellis said. “It recognizes the hard work everyone at my529 puts in to provide a high-quality, low-cost savings plan. It’s an honor to lead my529 and continue our commitment to excellence.”
The report highlighted the amount of choice afforded to investors with my529’s 13 investment options, as well as the “mix of proven strategies” in the customized investment options.
Morningstar also emphasized my529’s consistent fee reductions and the tax benefits available to Utah residents for contributions.
“Utah frequently makes incremental improvements that result in small and steady fee reductions,” Hume wrote. “For residents of the Beehive state, the plan offers a tax credit … adding to its appeal for those who qualify.”
my529, Utah’s official nonprofit 529 educational savings plan, is highly rated by Morningstar Inc.
Accounts are free to open, and my529 requires no minimum deposit or account balance. my529’s user-friendly website, my529.org, makes it easy to open, manage and contribute to an account online.