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Kiplinger recently released its rankings for the best 529 college savings plans and Ohio’s 529 Plan, CollegeAdvantage is included on the list. In fact, the Kiplinger report recognizes Ohio’s 529 Plan as having best age-based portfolio for conservative investors. In addition, Kiplinger drew special attention to two of our Individual Investment Options.
Here’s what Nellie S. Huang, the senior associate editor for Kiplinger, had to say about CollegeAdvantage: For “investors who would rather hold fewer stocks and more bonds, our top choice is the Ohio CollegeAdvantage 529 Savings Plan conservative age-based portfolio. Of all the plans we reviewed, it offers the least risky path from beginning to end. At age 1, the plan’s conservative portfolio holds 50% of assets in stocks and 50% in bonds and cash. At age 19, all assets sit in cash.
“The plan is built around funds from Vanguard — both index and actively managed — and Dimensional Fund Advisors. And among its static investment options, which include both portfolios and individual mutual funds, are the low-cost Admiral shares class of two actively managed Vanguard fund that are members of the Kiplinger 25, our favorite no-load mutual funds: Vanguard Wellington and Vanguard High-Yield Corporate.”
CollegeAdvantage is proud to receive this recognition for our conservative age-based portfolios. We’re proud of all our 529 investment options, ranging from ready-made, age-based and ready-made risk-based portfolios; individual investment options, and FDIC-insured banking options. We’ve partnered with leading investment managers Vanguard, Dimensional Fund Advisors, and Fifth Third Bank to provide these 529 plan investment options.
Fifth Third Bank recently increased the rates on two of their FDIC-insured 529 CDs. Those CDs with terms of 6-11 months and 12-23 months have new Annual Percentage Yield (APY) of 1%. This APY is actually higher than the 2017-2018 tuition inflation rate of 0.6% for Ohio’s thirteen public universities. Therefore, if your child is getting ready to ready off to college and you want to be more conservative in your 529 saving plan, you have the choices among the conservative age-based portfolio, the capital preservation option, as well as the banking options.
Not sure about your risk tolerance when it comes to investing? Ohio’s 529 Plan can help with our tools and calculators. Answer the questions on our risk tolerance questionnaire to gauge how comfortable you are when it comes to the risks and rewards of aggressive versus conservative approaches to growing your account value. The other calculator available are: the tax benefit tool, which compares the savings between a tax-free 529 plan to a taxable savings account; the college savings planner tool, which can estimate a monthly amount needed to reach you college savings goal; and the cost of waiting tool, which illustrates the power of compound interest.
Kiplinger is not the only industry organization that has high regard for Ohio’s 529 Plan. Business Insider recently ranked CollegeAdvantage as the third best college savings plan in the nation. Savingforcollege.com, a trusted college-savings industry resource, analyzes the investment performance of the nation’s 529 plans on a quarterly basis and ranks them. Ohio’s 529 Plan is listed as first in the nation in the 5-year performance category and second in the nation in the 10-year performance category. Morningstar Inc. recognized CollegeAdvantage Direct 529 Plan as Silver plan, making it one of the top 13 529 plans out of 63 reviewed. According to the Morningstar analyst’s report, “Thanks to low fees and an impressive investment lineup, Ohio's direct-sold CollegeAdvantage plan remains a top choice for residents and nonresidents alike.” Additionally, the report points out, “Results generally look attractive, with the majority of plan options earning 4 or 5 star ratings. Tax benefits create further incentive for Ohioans, as contributors can deduct up to $2,000 per beneficiary from their taxable income. The plethora of options may also appeal to out of state do-it-yourselfers.”
To do more research on CollegeAdvantage and the tax advantages it offers, please visit here. If you are ready start your CollegeAdvantage Direct 529 plan, enroll online today. Remember, 529 plans are a great alternative to student loan debt. CollegeAdvantage is your plan, you way.
Posted on September 27, 2017