State college savings plan rises to the top
Released Jan. 24, 2004

     State Treasurer John Perdue believes there are likely a couple of reasons why the state’s SMART529 college savings plan has experienced significantly increased participation recently.
     Over the past year the nationally marketed plan has seen accounts numbers jump from 15,000 accounts valued at $87 million to over 35,000 accounts valued at $282 million.
     “One reason is that the stock market has turned around and people are investing again,” Perdue says. “But the other is that our SMART529 program is starting to gain national recognition as being a very good college savings plan.”
     As evidence, Perdue says the web site Savingforcollege.com, which is probably the most commonly referenced national source for college savings advice, awarded its five-cap rating to both the direct-marketed and broker-marketed versions of SMART529. The five-cap rating is the highest rating possible. Only two other state 529 plans currently have five-cap ratings, he noted.
     “I think people nationally are responding to the fact that we offer a well-thought out, well-managed plan that really works. Whether West Virginians choose to invest directly through the program manager or invest through their financial advisors at investment firms or banks, SMART529 gives them a package of benefits that are hard to beat.”
     Among the benefits, Perdue listed professional money management, tax-free earnings, a West Virginia income tax deduction for account contributions, the protection of account assets from creditors, and the protection from losing state-funded student financial aid.
     He said he complimented the state Legislature for giving the program board of trustees the tools it needed to design a plan that could excel in helping West Virginia families reach their college savings goals.
     He also said credit has to go to The Hartford, the financial services firm that the state contracted to manage the SMART529 plans.
     “They are experienced plan managers, with excellent customer service and solid money management. They have worked very closely with us to tailor our program to today’s marketplace.”