BOSTON (TheStreet) -- Vanguard announced Tuesday that it will lower the cost of saving for college by reducing expense ratios on its Vanguard 529 College Savings Plan by nearly half on some portfolios.
Vanguard says the discount will affect more than 100,000 clients and represents $8.5 million in annual savings.
In detail, those invested in one of the plan's three age-based options will see their all-in costs reduced from 0.44% ($4.40 per $1,000 invested) to 0.25% ($2.50 per $1,000 invested). Those invested in one of the plan's 19 individual portfolios will see their all-in costs reduced to between 0.25% and 0.55% from between 0.44% and 0.66%.
The Vanguard 529 Plan, sponsored by the state of Nevada, has $4.5 billion in assets. In a statement, Vanguard said it has worked with the state and program manager
to cut costs. This is the fifth time clients have seen costs reduced since the plan was introduced in 2004. The new expense ratios become effective Oct. 15.
Vanguard has also partnered with
to reduce its all-in plan expenses by one-third. In August, the
, the nation's largest direct-sold 529 college savings plan, cut its expense ratios nearly in half. Earlier this year,
also announced lower all-in plan costs.
-- Written by Joe Mont in Boston.
>To contact the writer of this article, click here:
>To follow the writer on Twitter, go to
>To submit a news tip, send an email to:
Get more stock ideas and investing advice on our sister site,