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NC National College Savings Program |
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State Provider: North Carolina; Net Assets ($mil):
$488.2 as of
10-31-09 |
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North Carolina's National College Savings plan may appeal to some, but it's not a standout at the national level. Today, residents of any income can deduct up to $2,500 ($5,000 for married couples filing jointly) in annual contributions. This gives in-staters an incentive, but the tax breaks are not a sure thing. Unless extended, they will expire for residents over certain income levels in 2012. The rest of North Carolina's plan is a similarly mixed bag. The fund offers plenty of flexibility, with investment options ranging from four age-based tracks to twelve individual funds and static portfolios. However, one age-based track still relies on largely unimpressive funds from Seligman and leans aggressively toward equities even as the beneficiary is within a few years of college. Meanwhile, the Vanguard tracks give investors access to cheaper all-index age-based options, but even the aggressive Vanguard track starts out with a sizable stake in fixed income. And while fees are reasonable in most cases, the Balanced Fund option is pricey. Residents should carefully consider the plan given the new tax breaks, but realize it may be serving as a temporary carrot to lure investors into what is otherwise a mediocre plan. Nonresidents should look elsewhere. (Information as of 03/05/2009) |
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| Availability: Sales Channel |
Resident: Direct
Non-Resident: Direct
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| Annual State Tax Deduction |
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Up to $2,500 (S),
5,000 (J)
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| Max Investment/Beneficiary |
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$382,032 |
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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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| Aggressive, Conservative, Moderate |
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Age-Based Portfolios
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| Self-Directed Funds |
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| US Stock
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Bond |
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| Total International Funds: 22 |
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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 |
0.25 |
| 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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