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SC Future Scholar 529 College Savin |
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State Provider: South Carolina; Net Assets ($mil):
$770.5 as of
10-31-09 |
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South Carolina's advisor-sold Future Scholar's Plan is a mixed bag. On the tax front, it looks quite good: Residents receive full state-tax deductions on contributions. Since the maximum contribution limit was recently raised to $318,000, the tax incentive can be significant for college savers. A strong lineup of underlying equity funds is another favorable feature of this plan. The plan relies exclusively on generally solid offerings from Columbia Management and allows investors to mix and match from lots of different options. When it comes to expenses, however, the plan's appeal screeches to a halt. With a 0.30% management fee and 0.25% marketing fee on top of underlying fund expenses, investors are paying anything from 0.65% for the Stable Capital portfolio to 1.57% for an international fund, in addition to broker fees. That is an important consideration, since Morningstar research suggests expenses are the best predictors of future returns. With the high fees in mind, we recommend in-state residents consider the less flexible, but cheaper direct-sold option. Non-state residents should shop elsewhere. (Information as of 02/26/2009) |
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| Availability: Sales Channel |
Resident: Both
Non-Resident: Broker
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| Annual State Tax Deduction |
| Max Investment/Beneficiary |
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$318,000 |
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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 and Self-Directed Funds |
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| US Stock
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Bond |
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| Total International Funds: 179 |
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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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1.3 |
| 529 Plan Avg |
0.8 |
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| Portfolio Expense Ratio Range |
| Fee to Change Beneficiary |
| Share Classes: Sales Charge |
| A:
3.25 – 5.75% (front-load) |
| B:
3 – 5% (redemption) |
| BX:
2.5% (redemption) |
| C:
1% (deferred-load) |
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| Initial Purchase |
$250 |
$250 |
| Additional Purchase |
50 |
50 |
| Initial (AIP) |
50 |
50 |
| Additional (AIP) |
50 |
50 |
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