529 College Savings

New Mexico Attorney General Gary King says a settlement has been reached with OppenheimerFunds, Inc. to resolve an investigation into the company's management of the state's 529 college savings programs. Under terms of the settlement announced Monday, King says Oppenheimer agrees to pay New Mexico $67.31 million — all of which will be distributed to 529 plan participants affected by the performance of Oppenheimer Core Bond Fund. Oppenheimer's affiliate, OFI Private Investments, remains the program manager for the state's two 529 college savings programs — the Education Plan and Scholar's Edge. The settlement requires final approval from the Education Trust Board before it becomes ... Read Full Story

Enacted in November 2009, the Worker, Homeownership, and Business Assistance Act of 2009 contains many tax provisions that affect individual and business taxpayers. For individuals, the Act provides an expansion of the firsttime homebuyer tax credit by including existing homeowners who are "long-time residents." A number of other key measures contain changes for businesses, including an important new net operating loss provision. Homebuyer Tax Credit Under Prior Law Prior to the new law's enactment, a refundable federal tax credit of up to $8,000 ($4,000 for a married taxpayer filing separately) was allowed for qualifying first- time homebuyers who purchased a home between April 8, ... Read Full Story

Fidelity Investments says it is slashing maintenance fees on the 529 college savings plans it runs in five states. Fees on indexed plans will be cut in half, while fees on actively managed and advisor-sold plans will be cut by a third, the firm said. Fidelity manages plans sold in Arizona, California, Delaware, Massachusetts and New Hampshire. The changes mean a family with $50,000 in an indexed portfolio might now pay $125 a year in fees, instead of $250, assuming the amount in the plan remained unchanged. The announcement made by Fidelity on Tuesday is likely a move to stay competitive, said Joe Hurley, ... Read Full Story

With tuition costs rising dramatically over the past 20 years, it’s no wonder that financially savvy parents have started saving more money more quickly, just to make sure there’s enough to put the kids through college when the time comes. And 529 college savings plans have been promoted as the number one way to set that money aside and watch it grow. According to Financial Research Corporation, $15.5 billion when into 529 plans it 2006, and $15.2 billion in 2007. But when the market collapsed, many investors began to shy away from 529 plans, often at the recommendation of their financial advisors. In 2008, ... Read Full Story

Since we’ve been covering college savings and 529 plans here lately, I thought it made sense to have a quick discussion about how you might consider investing your funds with your 529 savings plan. Let’s discuss how to achieve a proper asset allocation within your 529 plan . What is Asset Allocation? Asset allocation is spreading your money over different types of asset classes. The three types of asset classes are stocks, bonds, and cash. If you’re investing for the long-term you can reduce your risk by allocating your funds across these different assets. Each asset responds differently to the various changes to the ... Read Full Story