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NJ BEST Educational Savings Trust |
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State Provider: New Jersey; Net Assets ($mil):
$421.7 as of
10-31-09 |
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The same weaknesses that plague New Jersey's broker-sold plan also trip up the direct-sold version. Run by Franklin Templeton, it is only available to the residents of New Jersey. The state doesn't provide any kind of state-tax deduction on contributions, so other than scholarship programs available to those that attend college in New Jersey, there's not much reason to stay in-state. Even then, the scholarships don't amount to much: Residents can receive $500 to $1,500 in scholarships if the beneficiary or contributor is a state resident at the time of enrollment, the account is open at least four years, and contributions equal at least $1,200. The plan itself is composed of some of the same age-based and static allocation portfolios as its sibling broker-sold option, although it lacks most of the individual fund portfolios. The underlying mutual funds are generally decent, but the plan's diversification leaves something to be desired, and expenses aren't competitive. Costs for the age-based plan range from 1.02% to 1.23% of assets annually, which makes it considerably more expensive than a number of other direct-sold plans across the country. In all, investors can find cheaper, better options elsewhere. (Information as of 03/31/2009) |
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| Availability: Sales Channel |
Resident: Direct
Non-Resident: None
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| Annual State Tax Deduction |
| Max Investment/Beneficiary |
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$305,000 |
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(includes appreciation)
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| Mos. to Qualified Withdrawal |
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Public, Private & International
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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: 19 |
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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 |
0.4 |
| 529 Plan Avg |
0.8 |
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| Portfolio Expense Ratio Range |
| Fee to Change Beneficiary |
| Share Classes: Sales Charge |
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| Initial Purchase |
$25 |
$25 |
| Additional Purchase |
25 |
25 |
| Initial (AIP) |
25 |
25 |
| Additional (AIP) |
25 |
25 |
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