Anyone with a child or grandchild in college understands that the cost of attendance -- tuition, room and board and other expenses -- are increasing, and fast. If preparation to help pay for college is not done early, the resulting debt to students and their families can be crushing for many young graduates looking to start a career.
Parents and grandparents in West Virginia do have a simple and solid choice to help defray the cost of college: the SMART529 Direct college savings plan.
Currently, 38,552 West Virginia families are invested in the plan, which is administered by the State Treasurer's office. And along with allowing for monthly contributions that fit your budget, the plan also provides families with a break on their West Virginia state income taxes.
"We have different tiers as it relates to investment," Treasurer Riley Moore said during a stop in Wheeling. "Obviously, we're a little bit more aggressive in the early years, but we do play it conservative in the out years to try to protect assets under management for us to ensure that those dollars are there. And I think that conservative approach that we've taken in terms of investment has paid dividends."
Moore's strategy is paying off, as the nationwide college planning website SavingForCollege.com ranked West Virginia's SMART529 Direct plan the best in America for the second quarter of 2023 in both five-year and 10-year investment performance. The state's plan topped more than 3,000 other 529 investment options around the country.
"We're getting the right managers on this money," Moore added, "and making sure that we're not getting taken to the cleaners on fees. … It's something we want to shout from the mountaintops."
Indeed. West Virginia's SMART 529 plan is another success for the Mountain State.