Considering the growing, exorbitant price tags on your children’s college education, it may be time to start thinking about saving for it now. State Street Global Advisors recently announced the launch of the SSgA Upromise 529 Plan that will achieve your children’s goal through investment strategies that utilize SPDR exchange traded funds.
“We’re excited to partner with Nevada and Upromise Investments, Inc. to offer SPDR ETF investments to American families looking to enhance their college savings strategies,” James Ross, senior managing director and global head of SPDR Exchange Traded Funds at State Street Global Advisors, said in a press release. “The SSgA Upromise 529 Plan combines the benefits of State Street’s institutional asset management with SPDR ETFs to offer advisors and investors innovative college savings solutions at significantly lower costs.”
529 savings plans are tax-advantage method for saving toward future college expenses. Investors can establish a college savings fund that pays for a beneficiary’s room, board, mandatory fees, books, computer and tuition. Investments in the savings plan are not subject to federal tax as long as the money is used for college expenses. [Advisor ETF Usage Rose 10% Last Year]
The SSgA Upromise 529 Plan will provide seven college date portfolios to choose from, with a conservative, moderate or aggressive risk-based strategy. Investors may also create static portfolios with fifteen SPDR ETFs. Additionally, the plan comes with a savings portfolio that invests 100% of its assets in the Sallie Mae High-Yield Saving Account.
For more information on saving toward retirement, visit our retirement category.
Max Chen contributed to this article.