A new Fidelity Investments poll reveals that 54% of parents with children age 10 or younger who do not have a 529 plan are now more likely to open one since the 2006 Pension Protection Act makes permanent the ability of 529 account holders to take federal income tax-free distributions for qualified education expense. That tax break had been scheduled to expire in 2010. Less than 25% of parents currently saving for college have 529 plans, the poll found, and 21% of parents saving for college have never even heard of a 529 plan.
Envestnet Asset Management, which provides Web-based separate accounts, mutual funds, and alternative investments to more than 10,000 advisors, launched its re-branded Web site, www.envestment.com.
Asset Allocation & Target Funds, a printed guide for investors that explains the asset allocation, risk tolerance, setting a time horizon for investment goals, and how lifecycle funds work has been published as a collaborative work by STI Classic Funds and Lightbulb Press.
Monetta Mutual Funds expects to introduce in early December its Monetta Young Investor Fund, a mutual fund meant to appeal to young people that will invest 60% in the S&P 500, while the rest is invested in company holdings that children and teenagers recognize, such as McDonald’s and Best Buy. Shareholders also earn free annual college tuition credits equal to 5% of their account balance that can be used at nearly 200 private colleges nationwide. Participants receive a quarterly newsletter, an investment kit, and the opportunity to play educational games and other activities for prizes.–Kara P. Stapleton