Bright Start
Hi Terry - I just moved back to the US and started a Bright Start account for our daughter. It seems there was a change in financial managers to Union Bank and Trust. I read your comments about previous managers, do you have an opinion about Union? Would you still recommend Bright Start over Bright Directions? As I started recently it should be a low hurdle to switch.
Terry Says
Well, Bright Start and Bright Directions are almost exactly the same program -- but Bright Directions is sold through advisors who receive a commission for explaining it to you. And there are some differences in the investment options. Here's how the differences are described at SavingforCollege.com: Illinois has three 529 college savings plans, as well as a prepaid tuition program. The Bright Start College Savings Program, managed by OFI Private Investments Inc., comes in a direct-sold version and an advisor sold version. (The direct-sold Bright Start program has more investment options.) The Bright Directions College Savings Program is an advisor-sold 529 savings program managed by Union Bank and Trust Company, offering a diverse selection of fund families including funds managed by female- and minority-owned firms. CollegeIlinois!, the state’s prepaid tuition program, is available only to Illinois residents. I added a link (above) so you can read the entire analysis. Frankly, I still prefer some of the higher rated plans (search for them at the link above) but since you get a small tax break on your Illinois income taxes for investing in an Illinois plan, I would go with the Bright Start savings plan. (And definitely NOT the prepaid tuition plan -- CollegeIllinois.)
