529s

College Savings Plan Gets Smarter

June 16, 2008 - Friends and family members of New York college-bound students can now make contributions to a student's 529 college savings plan, thanks to a change in New York State law that mirrors similar programs in other states. With $8.3 billion in assets, New York's 529 plan has bragging rights to having the largest direct-sold channel with $7.1 billion across 500,000 accounts as of May 2008. Its companion advisor-sold plan channel has additional assets of $1.2 billion and 100,000 accounts. With combined assets, New York is overall the fourth largest college savings plan in the nation.

Hartford Courts College Plans in Other States

March 24, 2008 - After a year of record growth, Hartford Financial Services wants to expand its 529 college savings business over the next two years by increasing sales and, perhaps, in what would be a shift in strategy, by becoming a plan sponsor in another state. Last year, the Simsbury, Conn., company increased its 529 college savings plan sales a record 29.5%, to $250 million, and its 529 plan assets under management 21%, to $1.1 billion. Now it says it will start examining requests for proposals to determine if it wants to become a provider for states other than West Virginia, whose plan it has sponsored since 2002.

Week in Review

November 25, 2007 - After Two Month Suspension, China Again Approving Mutual Funds China regulators put new mutual fund offerings on the back burner over the past two months in an attempt to cool down what appears to be an overheated market, but have just allowed ICBC Credit Suisse Asset Management's Core Value Funds and Golden Eagle Asset Management's Component Stocks Preferred Funds to reopen, Shanghai Daily reports.

Executive Moves

November 25, 2007 - Legg Expects to Announce New Chief Executive Soon; Says Search is Progressing Legg Mason Chairman and Chief Executive Officer Raymond 'Chip' Mason said the firm expects to announce its new chief executive officer in the 'reasonably near future' and that the search is moving along as planned.

Parents Failing to Plan for Children's Higher Education

September 16, 2007 - Parents certainly are aware of the need to save for children's college education, but not all are stashing away money in appropriate investment vehicles, such as 529s that are tax-free. Seventy-three percent of parents have some sort of college savings plan, and 80% of investors are aware of 529 plans, according to a survey conducted by The Hartford Financial Group, which interviewed 2,549 parents in households with children under the age 15.

Missouri Adding Terror-Free' Options to 529 Plan

September 9, 2007 - The 'Show Me' State of Missouri is about to show the 529 college savings plan marketplace just how innovative it can be. Beginning Sept. 24, two new 'terror-free' investment options will be added to the advisor-sold portion of the MOST Missouri Saving for Tuition Program. The Roosevelt Anti-Terror Multi-Cap Fund, the world's only certified terror-free fund, which invests in U.S. domestic companies, will become available, as will an actively managed international equity separate account that UMB Investment Advisors will manage.

Illinois Lawsuit Challenges 529 Plan Tax Incentives

July 1, 2007 - An intended class-action lawsuit filed in Illinois in mid-May has the potential to challenge how all state Treasury offices apply tax deductions for contributions to in-state, versus out-of-state, 529 college savings plans. At the center of the lawsuit are the tax incentives that many states extend to residents allowing them a tax deduction for each year's contribution to a 529 plan sponsored by their home state's Treasury. However, tax deductions for similar contributions made to 529 plans operated by other states are generally not allowed. That policy of providing favorable tax incentives for in-state contributions over contributions to out-of-state plans is unconstitutional, charges the Illinois lawsuit, and could spark major changes to all state plans.

A Case for the TuitionMAR

May 27, 2007 - As Money Management Executive launches this year's set of State Tuition Index and Datasheet reports, a new paradigm for evaluating college savings plan is introduced. With MME's TuitionMAR (minimally acceptable return) statistics, a set of core absolute return benchmarks is now available to assist mutual fund companies, 529 plan sponsors and financial planners in evaluating the ongoing success of a college savings plan investment. Updated annually and a core element of MME's 529 Risk-Adjusted Performance (RAP) Report series, these benchmarks create a framework for the ongoing evaluation of minimum target rate returns required by parents faced with saving enough for college.

Unique 529 Reports Pair Tuition Costs With Minimally Acceptable Returns

May 27, 2007 - Money Management Executive this week has released a comprehensive, unique set of 529 data to help mutual fund companies, financial advisers and their clients more accurately plan college savings in both the short- and long-term. Using exclusive data compiled by 1693 Analytics of Williamsburg, Va., the MME State Tuition Index and Datasheet reports are the first definitive public college tuition data indexes and absolute return benchmarks. Each report weights the college and university tuition and fee averages depending on the institution's size. They are the first installment in MME's 529 Risk-Adjusted Performance (RAP) Report series.

529 Calculators Would Better Educate Parents

May 13, 2007 - NEW YORK-Future generations are going to be saddled with tremendous college debt if the financial industry doesn't do a better job of talking to families about the importance of saving for their children's higher education, according to panelists at an AllianceBernstein Investments event here last week, 'Perspectives on College Savings.' The industry must devise more tools to help parents grasp exactly how much money their children might need for college, said Barbara Tornow, senior adviser to the vice president for enrollment and student affairs at Boston University. Products similar to what are available for people to calculate how much money they will need in retirement would be useful, she said.