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VT Higher Education Investment Plan |
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State Provider: Vermont; Net Assets ($mil):
$91.6 as of
10-31-09 |
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The Vermont Higher Education Investment Plan, managed by TIAA-CREF, is a decent option for in-state investors. Residents are eligible for a state-tax credit of 10% on the first $2,500 in contributions per beneficiary (up to $250 per beneficiary per taxpayer). Also, the plan doesn't charge any application or account maintenance fees. The plan charges a flat annual fee of 0.80%, which makes it one of the pricier state plans managed by TIAA-CREF. The plan also lacks flexibility with just three investment options--an age-based track, an all-equity static portfolio (which has a 20% international exposure), and a guaranteed portfolio. The age-based offering is well-diversified, providing broad exposure to various types of securities including real estate and inflation-linked securities. It falls on the conservative side, though, with its initial 20% bond allocation (72% of assets are invested in domestic and international stocks and 8% are invested in real estate securities). On the whole, this slim lineup makes it tough for investors to customize their own plans (essentially they can only dial up their equity exposure through the use of the equity-only static fund or add a cash stake). Residents may want to invest here if the tax benefits outweighed the plan's shortcomings, but everyone else should keep looking. (Information as of 03/03/2009) |
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| Availability: Sales Channel |
Resident: Direct
Non-Resident: Direct
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| Annual State Tax Deduction |
| Max Investment/Beneficiary |
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$240,100 |
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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: 14 |
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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 |
0.15
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0.45 |
| 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) |
15 |
15 |
| Additional (AIP) |
15 |
15 |
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