The turnaround of Rhode Island's 529 college savings program under General Treasurer Seth Magaziner was recognized this week when Morningstar awarded the state's CollegeBound Saver and CollegeBound 529 plans Silver and Bronze medals, respectively in its 2016 national ratings.
"The state overhauled both plans in July 2016, replacing former program manager AllianceBernstein with Invesco and Ascensus," wrote Morningstar. "[CollegeBound Saver] offers extremely low fees for Rhode Island residents--the plan's primary investors--earning it a Silver rating."
This week's praise stands in stark contrast to Morningstar's previous reviews, which regularly ranked the state's program at the bottom among its peers, due to the former program's high fees and poor investment performance.
During his first year in office, General Treasurer Seth Magaziner replaced the program manager, secured some of the lowest fees of any 529 plan in the nation for Rhode Islanders, and overhauled the investment options to provide stronger performance.
The new managers are also tasked with bringing 5,000 new accounts into the program in the next two years. In support of taking over the program management, Ascensus College Savings opened a Rhode Island office, which has already brought several dozen jobs in to the state, including two resident field representatives charged with community and employer outreach.
Rhode Islanders taking advantage of the newly improved CollegeBound Saver can affordably save for college and other higher-education related expenses. There is no minimum to open an account and Rhode Island residents may be eligible for a tax deduction. Visit www.collegeboundsaver.com or call (877) 517-4829 to learn more.
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About CollegeBound: CollegeBound Saver and CollegeBound 529 are Section 529 plans offered by the Office of Rhode Island General Treasurer. Ascensus Broker Dealer Services, Inc. serves as the Program Manager and Invesco Advisers, Inc. serves as the Investment Manager. CollegeBound Saver and CollegeBound 529 are designed to help individuals and families save for college in a tax-advantaged way and offer valuable advantages including tax-deferred growth, generous contribution limits, attractive investment options, and professional investment management.