Vanguard 529 Plan Opens To Investments

December 10, 2002 ( - Vanguard has announced its 529 College Savings Plan is effective and available for investments.

Sponsored by the State of Nevada and administered by Upromise Investments, Inc., the nationally available Vanguard 529 College Savings Plan offers 21 investment options, including three age-based options and 18 individual portfolios, with all-in costs expected to be as low as 0.65%.

The three risk-based investment “tracks” are designed to create conservative, moderate and aggressive asset allocations.  The portfolios will automatically adjust from a higher allocation of stocks for younger ages to a higher allocation of bonds and money market investments as the covered child nears college age.

Vanguard’s asset allocations within the portfolios are relatively conservative.  For example, the so-called Conservative Investment Track automatically adjusts into a proportion of 75% bonds and 25% money market investments when a child reaches the age of 11 – “considerably more cautious than many of the age-based options available today,” Vanguard Chairman John Brennan noted in a  recent press release .

In addition to the risk-based offerings, the Vanguard 529 College Savings Plan will also offer 18 Vanguard stock, bond, balanced, and money market portfolios, including five custom portfolios available only to plan participants.