Our View Brightens on This Illinois 529 Plan
Bright Start Direct-Sold College Savings Program is now rated Gold thanks to smoother equity adjustments and lower fees.
Jeff Holt: The state of Illinois overhauled its Bright Start Direct-Sold College Savings Program in 2017, and it now stands out as one of the top 529 plans out there. The plan's Morningstar Analyst Rating has been upgraded to Gold from Bronze.
The plan has a lot to offer for both the hands-off investor and the do-it-yourselfer. Hands-off investors may choose from the plan's two types of age-based portfolios: index or multifirm. Investors in these portfolios now ratchet down their equity exposure in smoother 10-percentage-point increments as the beneficiary approaches college age rather than the previous 20 percentage points. As their names imply, the index series invest in passive strategies, and the multifirm ones combine both active and passive strategies from a variety of firms.