College Savings

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5+2+9 = A simple formula to help you save for college

May 07, 2014

As warm weather approaches, so do thoughts of your kids running home from school for the summer. When it's time for them to go off to college, will you be running out of money to send them there?

May 29—or 5/29—provides the perfect opportunity to consider a 529 college savings plan to fund your children's higher-education expenses. Vanguard and other investment companies mark 5/29 as "College Savings Day" to bring attention to the fact that saving for college is one of the most significant things families can do for the children in their lives. A 529 plan is simple, flexible, and offers a range of investing options. You can invest in any state-sponsored plan, regardless of where you live or where your child goes to school, and possibly get a break on your state taxes along with federal tax benefits.*

Trust Vanguard to help you reach your college goals

529 college savings plans have tax advantages, high contribution limits, and investment flexibility—a combination you won't find with other college savings options. Vanguard investments offer exceptional value to help you meet your savings goals. And as a leader in 529 plans, we manage low-cost 529 options in 28 plans across the United States.

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The popularity of 529 plans has surged in recent years. As of December 2013, American families had a record $227 billion invested in almost 12 million 529 plan accounts, according to the College Savings Plans Network. That represents an increase of $36.4 billion over 2012. Indeed, the tax benefits of 529 plans are available to a qualifying student's relatives, guardians, and friends. And of course, any earnings grow tax-deferred to maximize your investment dollars.

There's no time like the present

Why start now? Compound savings are a powerful tool and an early start means more time is on your side. Every dollar you save now is another dollar—or more—you could have when the first tuition bill arrives. And there are a variety of 529 plans available to suit your needs.

The Vanguard® 529 College Savings Plan is sponsored by the state of Nevada, but it's open to any investor. It offers three age-based investment options and 19 individual portfolios, as well as:

  • Simplified investing with an automatic savings plan.
  • Low costs and fees so you can keep more money for tuition and other education expenses.
  • Vanguard's experience as a leader with 29 direct-sold plans, and almost $55 billion in total managed assets.

Looking for other options? Many state-sponsored plans offer Vanguard investments and can be opened with as little as $25, such as the College Savings Iowa® 529 Plan. Need to do a little homework? Visit our 529 page to learn the basics and use our interactive planning tools to explore your options and determine your savings goals and costs. Or simply call a Vanguard education specialist at 866-734-4533. We'll help you learn the ABCs of 529s and get your children on track to meeting their college needs.

*The availability of tax or other benefits may be contingent on meeting other requirements.

Notes:

All investments are subject to risk, including the possible loss of the money you invest.

For more information about any 529 college savings plan, contact the plan provider to obtain a Program Description, which includes investment objectives, risks, charges, expenses, and other information; read and consider it carefully before investing. If you are not a taxpayer of the state offering the plan, consider before investing whether your or the designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program. Vanguard Marketing Corporation serves as distributor and underwriter for some 529 plans.

For more information about The Vanguard 529 College Savings Plan, call 866-734-4533 or obtain a Program Description, which includes investment objectives, risks, charges, expenses, and other information; read and consider it carefully before investing. Vanguard Marketing Corporation, Distributor and Underwriter.

If you are not a Nevada taxpayer, consider before investing whether your or the designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program.

The Vanguard 529 College Savings Plan is a Nevada Trust administered by the Board of Trustees of the College Savings Plans of Nevada, chaired by the Nevada State Treasurer.

The Vanguard Group, Inc., serves as the Investment Manager and through its affiliate, Vanguard Marketing Corporation, markets and distributes the Plan. Ascensus Broker Dealer Services, Inc., serves as Program Manager and has overall responsibility for the day-to-day operations. The Plan's portfolios, although they invest in Vanguard mutual funds, are not mutual funds. Investment returns are not guaranteed and you could lose money by investing in the plan.

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