Who'd have thought 2020 could turn education on its ear?
Classes are zoomed, parents are knee-deep in lesson plans, and laptops reign supreme. And while pets may now double as classmates, missing homework can no longer be blamed on the dog.
Yet all this gives rise to good revelations too—like a whole new respect for learning and the importance of planning and saving for the education needs ahead.
Fortunately, The Vanguard 529 Plan has been future-focused all along. We’re committed to offering a premier savings plan that can help you give your children the education they deserve. And because we’re backed by decades of Vanguard financial experience, you’ll profit from low costs, expert management, and the stability of a company that’s grown to be one of the largest managers of money in 529 savings plans.1
The Vanguard 529’s variety of investment options also stands out as a strong point, and our upcoming enhancements will make them even better. We’ve recently shifted from age-based investment options to a simpler, more versatile enrollment-year approach. With Target Enrollment Portfolios, you can have the ease and flexibility of investing in a portfolio that corresponds to the date you expect your child to enter school—whether that’s K–12, a college or trade school, or beyond.
Like age-based options, enrollment portfolios are low-maintenance because their asset mix adjusts automatically to become more conservative as the enrollment date draws near. However, in Target Enrollment Portfolios, the adjustments occur more often and they’re more gradual, which reduces the potential for risk—an especially calming factor in unpredictable markets such as those we’ve seen this year.
If you’re more of a do-it-yourself investor and prefer to create your own strategy by selecting from among our many individual 529 portfolios, there’s good news for you too: Almost all of these portfolios have decreased their fees, making the already-low costs about as low as 529 costs go.
Good question. And yes, you should be. Our new Target Enrollment Portfolios are built to withstand seesaw markets over the long term, so now could be a better-than-good time to get started—especially if you put what you’d normally spend on extras like eating out and entertainment into a 529 plan instead.
So there you have it—an overview of how saving in The Vanguard 529 Plan could bring the future into clearer focus and help you feel confident about helping children you love get where they dream of going.
And maybe this forward thinking can also help you feel hopeful about getting back to the hustle and bustle of real schools, where “the dog ate my homework” just might qualify as a legitimate excuse once again.
1 Vanguard managed approximately $98.7 billion in 529 plan assets as of March 31, 2020.
All investing is subject to risk, including the possible loss of the money you invest.
For more information about The Vanguard 529 College Savings Plan, 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.
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. Other state benefits may include financial aid, scholarship funds, and protection from creditors.
The Vanguard 529 College Savings Plan is a Nevada Trust administered by the office of the Nevada State Treasurer.
The Vanguard Group, Inc., serves as the Investment Manager for The Vanguard 529 College Savings Plan and through its affiliate, Vanguard Marketing Corporation, markets and distributes the Plan. Ascensus Broker Dealer Services, LLC, 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.
State tax treatment of K–12 withdrawals is determined by the state(s) where the taxpayer files state income tax. Please consult with a tax advisor for further guidance.
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