Missouri 529 Goes Commission; Advisor, Broker Sold

October 7, 2002 (PLANSPONSOR.com) - Investors considering getting into the state of Missouri's 529 college savings program may now have a significantly easier time doing so.

The plan is available through brokers, dealers, financial advisors, and banks in addition to directly from Missouri officials, the officials announced in a press release.

The board overseeing the Missouri Saving for Tuition (MO$T) program approved an “advisor series” of MO$T that provides new investment options and a sales commission to brokers and advisors who market the program.

Investors in the program, called the MO$T Advisor Program, will pay a 5% up-front commission on contributions up to $59,999. Initial or additional contributions above this amount will be subject to lower commission rates. The entire sales commission goes to the dealer.

Non-commission, fee-based investment advisors also will be able to access the advisor program for their clients. They will be allowed to purchase MO$T Advisor Program shares at “net asset value” (NAV) waiving the up- front commission.

The Advisor Program will include eight investment options:

  • Growth and Income
  • Equity Index
  • Large-Cap Value Index
  • Small-Cap Blend Index
  • International Equity
  • Bond
  • Balanced
  • a guaranteed option with the same 3% minimum annual return as the direct-sold program. The annual investment management fee will be 0.65%, which is the same as for the direct-sold version. Other than the up-front commission, there will be no other sales fees.

The minimum initial investment requirement for the advisor-sold version will be $1,000 for each investment option and $3,000 for each account. Future contributions will need to be at least $25 per investment option, the program said.

Financial professionals can get more information at this Web site . Individuals should check  here .

Contributions of up to $8,000 annually for individual taxpayers and $16,000 for two-income households are deductible from Missouri state income taxes, and all earnings used for eligible education expenses are free of all state and federal taxes.

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