Wednesday, June 29, 2005

Get a handle on administration expenses for your 529 education savings plan

Tax sheltered education savings plans provide an excellent opportunity to grow your money tax free but, ensure you are getting the plan with the lowest overhead.

There are huge variations in plan costs. While some 529s charge no sales commission and annual expenses equal to less than 0.7 percent of assets, others impose an initial or deferred sales commission and expenses that can top 2 percent a year on some share classes. Such hefty costs make it tough to earn healthy investment gains.


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