State Treasurer Clint Zweifel (ZWY-ful) today said Missouri families will see the largest expense reduction ever for MOST–Missouri’s 529 College Savings Plan starting Monday, June 6. The 44-percent price reduction will make the do-it-yourself direct-sold MOST 529 Plan the fifth lowest-cost plan in the nation according to Morningstar.
The upgrades are a result of a new five-year public-private partnership with Upromise Investments and Vanguard announced in February that is estimated to save investors $18.5 million. The partnership also includes a $500,000 financial assistance package.
“The cost reductions and the $500,000 financial assistance package are a reflection of the commitment to higher education that parents and students are already making,” Treasurer Zweifel said. “Saving early and saving often is important for families thinking about college. Lower expenses on the MOST 529 Plan means that Missourians keep more of their money invested in the future of their children. I am pleased that we have been able to work with our partners at Upromise Investments and Vanguard to make it more affordable than ever for Missourians to save for college.”
The direct-sold MOST 529 Plan will feature low-cost Vanguard investments, including three age-based options, eight index-based portfolios, two conservative portfolios and four actively-managed portfolios. Costs will range from 0.29 percent to 0.38 percent for age-based, index-based and conservative options, which previously cost 0.55 percent. Actively managed portfolios will range 0.53 percent to 0.60 percent, which previously ranged 0.87 percent to 1.58 percent. The total asset weighted cost of the direct-sold MOST 529 Plan is now 0.32 percent – fifth lowest in the nation.
Missourians preferring to save through a financial advisor now have expanded world-class investment options through DWS Investments, the United States retail division of the world’s eighth largest asset manager. The advisor-sold MOST 529 Plan will be distributed solely through DWS Investments Distributors, while continuing to provide access to other investments, including American Century, American Funds, BlackRock, Columbia, Franklin Templeton, Invesco, PIMCO and T. Rowe Price. Investors will continue to have access to the Scout International Terror-Free portfolio from UMB Bank. No account owner will see a fee increase and 27 percent will see fees decrease.
Between the direct-sold and advisor-sold MOST 529 Plans, there are 129,000 college savers with more than $1.7 billion going towards higher education.
“Participation in MOST 529 Plans is up 50 percent since I took office in 2009, meaning more Missourians than ever are saving for the higher education of the children in their lives,” Treasurer Zweifel said. “I am passionate about continuing to promote the MOST 529 Plans not only as State Treasurer, but as a father of two girls. With the growth of each MOST 529 Plan, scale has enabled us to realize cost savings that rewards Missouri’s families. This makes higher education more affordable for all Missourians.”
Details for the new five-year $500,000 financial assistance package are expected to be made public in September.
“Just like many Missourians and their families, I combined savings, scholarships and part-time jobs to be the first in my family to graduate from college,” Treasurer Zweifel said. “Missourians have steadfastly saved record amounts and we are rewarding that commitment.”
To open a MOST 529 direct-sold account, visit www.MissouriMost.org or call 1-888-414-MOST. An account can be started for $25.
To open a MOST 529 advisor-sold account, contact your financial advisor, call 1-800-617-5097 or visit www.Most529Advisor.com.
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