Ivy Redesigns InvestEd 529 Plan, Adding Investment Options, Lower Fees

By a News Reporter-Staff News Editor at Education Letter -- Ivy Investments has enhanced the Ivy InvestEd? 529 Plan by lowering fees and expanding its investment options in conjunction with a contract renewal with the Arizona Family College Savings Program. InvestEd has been offered through the state of Arizona since 2001.

As part of a redesign and update of the plan, effective Sept. 18, 2017, InvestEd offers lower sales charges, a reduced minimum initial investment, an increased number of age-based and static portfolios and individual fund options, along with an expanded range of underlying funds within the age-based and static portfolios.

"Ivy Investments has made some important and competitive enhancements to the Ivy InvestEd? 529 Plan, which we believe will bring benefits to investors saving for higher education," said Dr. April Osborn, Executive Director with the Arizona Commission for Postsecondary Education. "We're pleased to extend our contract and continue our partnership with the InvestEd Plan for another four years and an option for three additional after that."

The sales charge for all InvestEd Portfolios, which are offered nationally through financial advisers, have been lowered to 2.5%, among the lowest in the industry, from a previous 5.75%. The minimum initial investment has been reduced to $250 from $750, or as low as $150 if the account has automatic monthly investments of a minimum of $50.

With much lower expenses and a lower initial investment, the plan is more accessible and affordable for a range of individuals and families, Osborn added. The total annual asset-based fees in the age-based portfolios will range from 0.78%- 1.02%, which is a material drop from the previous 0.92% - 1.17%.

"Our goal is to provide financial advisers with a competitive, cost-efficient 529 plan that they can utilize to help their clients best prepare for the higher education expenses of tomorrow," said Thomas W. Butch, president and CEO of Ivy Distributors, Inc. "We continually review the Ivy InvestEd? 529 Plan to ensure it meets the needs of today's investors, as shown with these latest changes."

Keywords for this news article include: Ivy Investments, Higher Education, Public Education, Investment and Finance.

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