Virginia529 Lowers Fees for College Savings Program
January 14, 2014 - Richmond, VA
RICHMOND, VA--(Marketwired - January 14, 2014) - Virginia529 College Savings Plan (Virginia529) has reduced administrative fees and added a new age-based evolving portfolio to the Virginia529 inVEST (inVEST) savings program. The changes were effective January 1, 2014.
The reduction decreases inVEST's already-low administrative fees from 0.20 percent to 0.15 percent, giving inVEST one of the lowest fee structures of all direct-sold 529 plans.
"We understand that our customers want to save as much as possible to fund their higher education goals," said Mary Morris, Virginia529 CEO. "Implementing this fee reduction helps their money go further."
inVEST offers 18 investment options, including nine static portfolios and nine age-based evolving portfolios. The investment mix of static portfolios, as their names imply, remains the same over time; the investment mix of the evolving portfolios automatically shifts to a more conservative mix every three years as the beneficiary's anticipated college enrollment date approaches.
"The exception to the three-year evolution comes with each new portfolio designed for our youngest participants," said Morris.
The new Rappahannock portfolio is an evolving portfolio designed for children three years old and under. Its investment mix of 80 percent equities and 20 percent fixed income is the same mix as the James River portfolio, also for newborns through three-year olds.
James River opened January 1, 2011 and will evolve January 1, 2015 to a 70 percent-equity/30 percent-fixed-income mix, designed for children between four and six years old. Rappahannock will retain its current allocation until January 1, 2018. The evolution date is the only difference between the two portfolios in 2014.
Morris noted, "Rappahannock may be the portfolio of choice in 2014 for families with younger children who want to retain the 80/20 investment mix longer."
Both will eventually evolve to 100 percent fixed income when the beneficiaries approach college age.
Although suggested for specific ages, each inVEST age-based portfolio is open to beneficiaries of any age. This allows account owners to select more aggressive or conservative allocations based on their individual preferences and circumstances.
inVEST has no state residency requirements for account owners or beneficiaries and no beneficiary age limits. Accounts may be opened at any time online at Virginia529.com. Like Virginia's three other 529 programs, earnings on inVEST accounts grow tax free and remain exempt when used for qualified higher education expenses. Contributions -- up to $4,000 per account per year with an unlimited carry forward -- are deductible in determining Virginia taxable income.
Virginia529 continues to enhance and encourage online account openings. To mark the new Rappahannock portfolio and reduced inVEST fees, they are offering a waiver of the $25 application fee for those who open an account online at Virginia529.com and use the promo code EDUCATE.
About the Virginia529 College Savings Plan:
Virginia529 is a 529 college savings plan that offers flexible, affordable, tax-advantaged savings for qualified higher education expenses through its four programs: Virginia529 prePAID (SM) (prePAID (SM)), Virginia529 inVEST (SM) (inVEST (SM)), CollegeAmerica® and CollegeWealth®. More than $48 billion in assets under management and 2.3 million accounts as of December 31, 2013 make Virginia529 the largest 529 plan available. For more information on Virginia529's college savings options, visit Virginia529.com or call 1-888-567-0540 to obtain program materials. These include information on Virginia529 programs, investment objectives, risks, charges, expenses and other important information; read and consider them carefully before investing. All investments are subject to risk, including the possible loss of the money you invest.
Tel: 804-616-8157 (m)