PROVIDENCE – CollegeBoundfund, the Rhode Island 529 college savings plan offering tax advantages, has added investment choices that increase the selection of low-cost options, according to a March 25 announcement from General Treasurer Gina Raimondo.
"It is never too early to start planning for college and no amount is too small to save," said Raimondo. Based on approval by the State Investment Commission in 2013, the program added a first-of-its-kind, age-based, low-cost suite of portfolios called the CollegeBoundfund Morningstar Age-Based Index Portfolios. These new funds are designed to track Morningstar's 529 College Savings Moderate Indexes and leverage the asset allocation and index construction expertise of Morningstar to provide a mix of assets targeted to each saver's age. The plan’s program manager, AllianceBernstein, builds the portfolios with index funds to keep costs low.
"CollegeBoundfund is already working well for so many Rhode Island families and these modifications will make the program better than ever, with more options and more choices with the lowest costs," said Gail Mance-Rios, acting executive director of The Rhode Island Higher Education Assistance Authority. "Plus, the plan will continue to offer all the other great features and benefits for account holders, including the popular online gifting tool, a state tax deduction, the CollegeBoundbaby program and automatic contribution options."
CollegeBoundfund accounts can be used to cover tuition and fees, books, equipment, supplies, and room and board at eligible educational institutions, including college, technical and graduate schools.