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AZ W&R InvestEd Plan |
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State Provider: Arizona; Net Assets ($mil):
$309.4 as of
10-31-09 |
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Arizona's InvestEd Plan, which is available only through financial advisors, is just so-so. Residents can now deduct up to $750 in annual contributions from state taxes ($1,500 if married and filing jointly) and expenses on the age-based and static allocation portfolios have come down to reasonable levels. However, since Arizona offers tax parity, meaning that college savers can invest in out-of-state plans and still receive the tax benefits, there's no reason, tax-wise, to stay in state. Investors can certainly find more compelling options across state lines, since the individual fund portfolios are still expensive, with total annual asset-based fees ranging from 0.88% for a money market option to 1.67% for a specialty real estate fund. We also question why the plan buys E shares for its individual fund portfolio options, even though other share classes of the same funds are significantly cheaper. Moreover, while the host of investment options provides plenty of flexibility, many of the underlying funds are unimpressive at best and lean heavily toward the growth-side of the spectrum. For example, of the underlying equity funds for the age-based and static portfolios, only one value fund is included. And none of the individual fund choices include a domestic value option. We’d encourage investors to shop around for a cheaper, more well-rounded option.(Information as of 02/18/2009) |
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| Availability: Sales Channel |
Resident: Broker
Non-Resident: Broker
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| Annual State Tax Deduction |
| Max Investment/Beneficiary |
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$335,000 |
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(includes appreciation)
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| Mos. to Qualified Withdrawal |
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Age-Based Portfolios
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| Static Portfolios |
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| US Stock
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Bond |
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| Total International Funds: 4 |
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| Underlying Funds’ Ratings |
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| Overall Morningstar Rating |
# Equity
Funds |
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# Bond
Funds |
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| Ratings as of
10-31-09 |
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| Range |
0.00
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0.94 |
| 529 Plan Avg |
0.8 |
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| Portfolio Expense Ratio Range |
| Fee to Change Beneficiary |
| Share Classes: Sales Charge |
| A:
4.25 – 5.75% (front-load) |
| E:
2.5 – 5.75% (front-load) |
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| Initial Purchase |
$500 |
$500 |
| Additional Purchase |
50 |
50 |
| Initial (AIP) |
50 |
50 |
| Additional (AIP) |
50 |
50 |
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