Columbia Management today announced the launch of its new Future Scholar 529 College Savings Plan featuring more investment options, reduced fees and lower investment minimums.
“We’re proud to offer more investment choice while significantly lowering overall expenses for families and financial advisors who are seeking a smart, disciplined and tax-efficient way to save for a child’s college education,” said Kevin Wasp, vice president of product management at Columbia Management.
More investment options:
The advisor-sold and direct plans added mutual funds from some of the most recognized investment managers in the industry, including: Columbia Management, Threadneedle Investments, The Vanguard Group, Dimensional Fund Advisors, MFS Investment Management, American Century Investments, BlackRock Fund Advisor’s iShares, Nuveen Investments, Winslow Capital, Franklin Templeton Investments and J.P. Morgan Asset Management.Reduced expenses: Overall plan expenses have dropped by 41 percent, placing the Future Scholar 529 College Savings Plan among the lowest cost direct-sold plans in the country, according to the most recent reporting from the Financial Research Corporation. Lower investment minimums: The direct-sold plan does not require an investment minimum. The advisor-sold plan minimum is now $100 to open account, and $50 for subsequent contributions. The Future Scholar 529 College Savings Plan offers three investment options:
- Age-based – corresponds with the child’s age and the parents’ risk tolerance over time
- Target-allocation – seven target allocation portfolios ranging from conservative to aggressive
- Single-fund – variety of mutual funds ranging from domestic and international equity funds to more-conservative fixed income funds