Colorado’s Direct Portfolio college savings plan breaks $1 billion mark

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Investments in CollegeInvest 529 plan help bring college within reach

The Direct Portfolio College Savings Plan, a 529 plan offered by Colorado’s CollegeInvest, now has more than $1 billion in total assets, demonstrating that many families are using this tax-advantaged tool to bring college within reach.

DENVER – The Direct Portfolio College Savings Plan, a 529 plan offered by Colorado’s CollegeInvest, now has more than $1 billion in total assets, demonstrating that many families are using this tax-advantaged tool to bring college within reach.

The $1 billion in total assets represents over 87,000 accounts in the plan, nearly 83 percent of whom live in Colorado.

“This is an impressive milestone, especially in these challenging economic times,” said Angela Baier of CollegeInvest, a not-for-profit division of the Colorado Department of Higher Education.  “Saving a little when children are young can make a big difference when they’re ready to go to college. And the federal and state tax benefits available to investors in CollegeInvest plans are an extra incentive to get in the habit of saving for higher education through the plans.”

Last year, CollegeInvest, which serves as Colorado’s higher education financing resource, announced that fees for Direct Portfolio had been reduced by 31% effective Dec. 1. Current and future Direct Portfolio plan investors will automatically benefit from the reduced annual asset-based management fee, which declined from 0.75% to 0.52%.

The fees were reduced as part of a five-year contract renewal CollegeInvest signed with The Vanguard Group and Upromise Investments, Inc. to manage the Direct Portfolio plan. Vanguard, one of the nation’s largest mutual fund companies, is known for its low mutual fund expenses.

Direct Portfolio is one of four unique college savings plans offered by CollegeInvest. CollegeInvest offers the only college savings plans that combine federal tax advantages with a Colorado income tax deduction for all contributions. Money saved through these 529 plans can be used nationwide at any eligible public or private college, university or vocational school.

Families can open a Direct Portfolio account as little as $25. The minimum for each additional contribution is only $15.

Direct Portfolio investors can choose from 11 investment options. Those include three age-based options, which automatically shift assets to more conservative investments as the beneficiary nears college age.

About CollegeInvest:
CollegeInvest is a not-for-profit division of the Colorado Department of Higher Education, and administers the state’s 529 college savings program.

For three decades, CollegeInvest has served as Colorado’s not-for-profit higher education financing resource, helping families across the state pay for college by providing planning tools, college savings plans, scholarships, matching grants, and community outreach programs. Families can access valuable information on planning and paying for higher education at www.collegeinvest.org.