Celebrating 100,000 Savings Plans on 5-29 Day
Move over, May the Fourth. Sure, we love Star Wars, but in our galaxy there is no better “ought to be a holiday” than May 29. Known nationally as “529 Day,” it is always the perfect day to celebrate saving for college. But this year we at Florida Prepaid have extra cause for excitement: We have surpassed 100,000 Florida 529 Savings Plans! For people who get excited when Florida families save, that’s out of this world!
So what is a Florida 529 Savings Plan? The key word is flexible. There are no requirements on how much or when you save. You contribute what you can, when you can. You review our investment fund options and make your selections. You maintain control of the funds and withdraw them as needed. You’re the boss!
In 2020, according to Statista.com, only 48 percent of U.S. families owned a college savings plan.
A 529 Plan also offers tremendous tax benefits — specifically, that your earnings are tax-free when used for qualified education expenses, such as tuition, books, fees, and room and board.
Here are a few reasons the Florida 529 Savings Plan is approaching $1 billion in total savings:
- We recently unveiled big improvements to our Savings Plans, including eight new individual fund options, offered by well-known companies such as Vanguard and BlackRock. The new choices include unique options such as a Social Index Fund.
- Low fees. We reduced fees by more than 70%, ensuring more of families’ savings go directly toward their savings goals and growth.
- Compatibility and portability. Many of our families buy a Prepaid Plan and then add on a 529 Savings Plan to save for non-tuition expenses. Florida 529 Savings Plans never expire and can be transferred to another family member. They can be used in-state, out of state, and at public or private institutions.
- Simplified investment strategy options: Families don’t have to be financial experts to get the most out of their investing. They can choose from three investment strategy paths: simple, intermediate and advanced. Our age-based portfolio is the most popular investment option.
- Highly rated: Morningstar has called our 529 plan among the two most improved in the nation, with a Bronze rating.
- Ease. It takes only 15 minutes to open an account. You’ll need to provide your address, date of birth, SSN, and a bank account if you want automatic withdrawals. You’ll also need the student beneficiary’s address, birthdate and SSN. Then check that off your to-do list!
We hope you’ll celebrate 529 Day with us by opening an account or adding to your existing plan today!