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VA CollegeAmerica |
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State Provider: Virginia; Net Assets ($mil):
$23,917.0 as of
10-31-09 |
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For investors both in- and out-of-state, Virginia's broker-sold CollegeAmerica plan is an appealing option. Investors can assemble their own portfolios with underlying funds run by Capital Research (advisor to the American Funds), one of the industry's most reputable active-management shops. American Funds has long employed some of the top minds in the investment business and has a history of looking out for the interests of investors. Virginians can now deduct up to $4,000 of contributions from their state income tax each year, with unlimited carryforward of excess amounts in future years. That doubles last year's annual deduction cap of $2,000, sweetening the pot for in-state residents. This well-diversified plan consists only of individual funds, so the task of determining the initial asset allocation appropriate for the age of the beneficiary and the investor's risk tolerance falls on investors and their financial advisors. These allocations should be revisited periodically and adjusted to reduce the portfolio's risk level over time. For those who need a little help getting started, though, American Funds does provide suggested allocations for beneficiaries of different ages on its Web site. Overall, reasonable fees and great investment options make this plan tough to beat, especially for Virginians. (Aside from the newly launched American Funds International Growth and Income fund, which charges a pricey 1.58% a year, annual fees on the individual fund options range from 0.65% to 1.10% of assets.) Do-it-yourselfers should know, however, that they have another fine option to consider in the state's direct-sold plan.(Information as of 03/10/2009) |
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| Availability: Sales Channel |
Resident: Broker
Non-Resident: Broker
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| Annual State Tax Deduction |
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Up to $4,000 (S),
4,000 (J)
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| Max Investment/Beneficiary |
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$350,000 |
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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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| 529A, 529B, 529C, 529E, 529F, A, B, C, E, F |
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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: 25 |
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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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10.15 |
| 529 Plan Avg |
0.8 |
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| Portfolio Expense Ratio Range |
| Fee to Change Beneficiary |
| Share Classes: Sales Charge |
| 529A:
2.5 – 5.75% (front-load) |
| 529B:
5% (deferred-load) |
| 529C:
1% (redemption) |
| 529C:
1% (deferred-load) |
| A:
2.5 – 5.75% (front-load) |
| B:
5% (deferred-load) |
| C:
1% (redemption) |
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| Initial Purchase |
$250 |
$250 |
| Additional Purchase |
50 |
50 |
| Initial (AIP) |
25 |
25 |
| Additional (AIP) |
25 |
25 |
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