529 Comparison

Path2College 529 College Savings Plan of Georgia

The Path2College 529 College Savings Plan of Georgia includes seven Investment Options from which to choose.

  • Managed Allocation
  • Aggressive Managed Allocation
  • 100% Equity
  • Balanced Fund
  • 100% Fixed-Income
  • Money Market
  • Guaranteed

The Managed Allocation option is an age-based portfolio which starts off with an aggressive mix when the beneficiary is young and grows progressively more conservative as they approach college age. The Georgia plan uses a mix of stocks, bonds, real estate and money market investments.

There is also an Aggressive Managed Allocation which uses the same types of investments, but includes a much higher percentage of equities. Though it varies, this portfolio uses about a 40-50% higher percentage of stocks than the Managed Allocation.

As the name states, the 100% Equity portfolio includes a blend of mutual funds invested in stocks. There can be large swings in the value of these investments and may be better suited for those with a long time horizon before college.

The Balanced Fund Option uses a combination of about 50% equities and 50% bonds and the funds are invested in funds offered by TIAA-CREF Funds - Institutional Class. There is still some volatility within these funds, along with an opportunity to create larger gains than possible through some of the more conservative portfolios.

Once college age is approaching and the time for risk has passed, the Money Market Option offers a way to protect your capital while earning returns higher than those offered through the Guaranteed Option. These returns, however, are not guaranteed and it is possible, though not likely, for the value to fall.

The Guaranteed Option provides a guaranteed rate of return while preserving your capital. This option will appeal to highly conservative investors as well as those closing in on college age.

TIAA-CREF Tuition Financing, Inc. is the Path2College Georgia 529 Plan Manager. TIAA-CREF Tuition Financing, Inc. receives a fee of between .29-.40% annually for investment management and administrative services. The program allows you to save for anyone's college education with only a $25 minimum deposit. There are no guarantees with this Georgia 529 Plan and account values will fluctuate up or down depending on the investments chosen.

Your investment in the 529 College Savings Plan of Georgia will grow federal and state tax-deferred. 529 owners who are Georgia taxpayers can deduct up to $2,000 per year from their Georgia State income tax return. Funds invested in the Path2College Georgia 529 Plan can be used for tuition and fees, as well as various other educational expenses like room and board, books, supplies and equipment. Qualified withdrawals will also be Federal and state tax free.

Anyone can start an acount with Path2College, but out of state investors should check with their home state to see if the tax benefits there may overshadow any other benefits from the Georgia investment.

For more information on Georgia's 529 plan options, visit http://www.path2college529.com/.

Digg Facebook Myspace StumbleUpon LinkedIn delicious Technorati Sphinn Google Mixx Reddit Meneame Yahoo Buzz Twitter