Treasurer Marshall Announces Price Reduction in the Cost of Saving for College Nevada College Savings Board has cut fees on its Vanguard 529 College Savings Plan Carson City—State Treasurer Kate Marshall announced today that the fee for each age-based option in the Vanguard 529 College Savings Plan is now 0.19 percent, down from 0.21 percent. This reduction in fees brings Nevada’s Vanguard 529 plan down to the lower end of the fee spectrum compared with other states and will facilitate the Vanguard plan continuing to be identified as one of the top plans in the country. Marshall said, “The fees were reduced as a result of negotiations between my office and Vanguard. My office and Vanguard saw an opportunity to take advantage of Vanguard’s economies of scale and operating efficiencies and pass along the resulting reduced costs to consumers.” According to a spokesman from Vanguard, the latest fee drop marks the seventh time that expenses have been lowered for the Plan’s investors. When the partnership amongst the College Savings Board, Vanguard, and Upromise Investments (now Ascensus Broker Dealer Services, Inc.) began in 2002, the average annual fee for age-based portfolios was .65 percent. With a 529 direct savings plan like the Vanguard 529 Plan, parents or family members can open a college savings account directly, without the help of a financial adviser. Investment earnings are tax free as long as they are used for qualified higher education expenses.* Since 2007, the number of accounts opened by Nevadans in Nevada’s college savings plans has increased 52%. The Vanguard 529 College Savings Plan includes more than 3,600 Nevada families as account owners, with college savings of around $118 million invested. The fee reduction will result in an estimated $2 million in savings per year for the Plan’s more than 250,000 clients across the United States. The Vanguard 529 College Savings Plan has repeatedly been named a gold-rated college savings plan by Morningstar, a leading provider of independent investment research. Only three other 529 plans in the nation have received this rating. “As tuition prices continue to rise, Vanguard believes investors should have access to low-cost college savings plans,” said Daniel Reyes, principal and head of Vanguard’s Education Savings Group. “The Vanguard 529 College Savings Plan is committed to helping investors achieve their college savings goals by continuing to reduce the cost of investing.” Roughly 50% of the Plan’s $10.3 billion in assets are invested in broadly diversified, age-based portfolios, which are designed to help investors stay appropriately diversified over time. The age-based portfolios maintain allocations to broad markets, such as U.S. stocks, U.S. bonds, and international stocks, and adjust automatically to more conservative allocations as college gets closer. To learn more about The Vanguard 529 College Savings Plan and other college savings plan options available to Nevada families, go to NevadaTreasurer.gov and then click on the College Savings Plans link. ### About Vanguard Vanguard, headquartered in Valley Forge, Pennsylvania, is one of the world’s largest investment management companies. Vanguard manages nearly $2.77 trillion in U.S. mutual fund assets, including more than $384 billion in ETF assets. The firm offers more than 160 index and actively managed funds to U.S. investors and more than 100 additional funds in non-U.S. markets. For more information, visit vanguard • All asset figures are as of July 31, 2014, unless otherwise noted. *Earnings on nonqualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes.
Posted on: Wed, 03 Sep 2014 20:17:22 +0000
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