REDWOOD CITY, Calif., June 1, 2016 /PRNewswire/ -- Wealthfront, the category-defining automated investment service, today announced a partnership with the State of Nevada and Ascensus College Savings, a division of Ascensus, Inc. to offer the Wealthfront 529 College Savings Plan. This marks the first 529 plan offered through an automated investment service, and is a continuation of Wealthfront's mission to deliver sophisticated investment management at prices affordable to everyone.
The Wealthfront 529 College Savings Plan will expand the low-cost product offering currently available today for Wealthfront clients. The Wealthfront 529 College Savings Plan represents the lowest cost 529 plan offered by any advisor and even costs less than the majority of plans for investors who manage their 529 portfolios on their own. For the first $10,000 of assets under management, Wealthfront does not charge an advisory fee, and for amounts above that, Wealthfront charges a monthly advisory fee at an annualized rate of 0.25 percent, just a fraction of what traditional advisors charge. The only other fees an account will incur are the costs of the underlying ETFs as well as state and program administration costs, which together range from 0.18 percent to 0.21 percent.
"We are excited to be the first automated investment service to offer a 529 college savings plan together with Nevada and Ascensus College Savings, who value innovation as much as we do at Wealthfront," explained Adam Nash, President and CEO of Wealthfront. "Wealthfront exists to push the limits of what is technically possible in the financial services industry and broadly deliver investment strategies that previously were only available to the wealthy. The Wealthfront 529 College Savings Plan is a natural extension of our mission."
Wealthfront is the investment advisor behind the Wealthfront 529 College Savings Plan, and will fully manage all 529 portfolios on behalf of its clients. The Wealthfront 529 College Savings Plan will be administered by the Board of Trustees of the College Savings Plans of Nevada, chaired by the Nevada State Treasurer. Ascensus College Savings, a leading administrator of 529 plans, will serve as the program manager.
"We are excited to join with Wealthfront and Ascensus College Savings to offer this unique and innovative 529 college savings plan," said Nevada State Treasurer, Dan Schwartz. "Nevada has long been a leader in the 529 community. We are thrilled to find a new partner whose focus is on serving an important up and coming millennial generation. Saving for college is so important for families of all ages and the Wealthfront 529 College Savings Plan is another option to help families make the dream of college a reality for their children."
"We are pleased to work with the State of Nevada and Wealthfront in support of our mission to make saving easy through accessible and affordable college savings plans," said Jeff Howkins, President and CEO of Ascensus College Savings. "Wealthfront provides an innovative combination of convenience and efficiency through their investment platform and we're excited to be a part of this first with the company."
To support the launch of its 529 college savings plan, Wealthfront will be kicking off an ongoing effort to educate Americans on saving for college and committing the entire month of June to education on college savings. To learn more about the Wealthfront 529 College Savings Plan and to sign up for the release this summer, please go to www.wealthfront.com/529.
Wealthfront is the future of investing. The company is focused on taking services typically reserved for the ultra-wealthy, automating them and delivering them directly to the investors at low cost. Wealthfront does not charge advisory fees on accounts under $10,000 and just one quarter of one percent after that. In just four short years, Wealthfront has rolled out the features and services that now define a new category called 'automated investment services.' Launched in December 2011, the company has raised over $129 million in funding to date from Benchmark Capital, DAG Ventures, Dragoneer Investment Group, Greylock Partners, Index Ventures, Ribbit Capital, Social + Capital and Spark Capital, and is based in Redwood City, CA. For more information please visit www.wealthfront.com.
About Nevada State Treasurer's Office
The Nevada State Treasurer's office administers the State's Section 529 college savings plans which now includes five savings plans and one prepaid tuition plan. Nevada's college savings program is one of the largest in the country with over $17 billion in assets under management. In addition, the Office manages the Governor Guinn Millennium Scholarship Program and the Nevada College Kick Start Program. Information on all the State Treasurer's programs designed to help make higher education more affordable for families can be found at NV529.org.
Ascensus, Inc., is the largest independent retirement and college savings services provider in the United States, helping over 6 million Americans save for the future. With more than 35 years of experience, the firm partners with financial institutions to offer tailored solutions that meet the needs of financial professionals, employers, and individuals. Ascensus specializes in recordkeeping, administrative, and program management services, supporting over 40,000 retirement plans and over 3.5 million 529 college savings accounts. It also administers more than 1.5 million IRAs and health savings accounts and is home to one of the largest ERISA consulting teams in the country. For more information about Ascensus, visit www.ascensus.com.
For more information about the Wealthfront 529 College Savings Plan (the "Plan"), download the Plan Description and Participation Agreement (to be made available on Plan launch) or request one by calling or emailing [email protected] or (650) 249-4250. Investment objectives, risks, charges, expenses, and other important information are included in the Plan Description and Participation Agreement; read and consider it carefully before investing. Wealthfront Brokerage Corporation serves as the distributor and the underwriter of the Plan.
Please Note: Before investing in any 529 plan, you should consider whether you or the beneficiary's home state offers a 529 plan that provides its taxpayers with favorable state tax and other benefits that are only available through investment in the home state's 529 plan. You also should consult your financial, tax, or other advisor to learn more about how state-based benefits (or any limitations) would apply to your specific circumstances. You also may wish to contact directly your home state's 529 plan(s), or any other 529 plan, to learn more about those plans' features, benefits and limitations. Keep in mind that state-based benefits should be one of many appropriately weighted factors to be considered when making an investment decision.
The Plan is administered by the Board of Trustees of the College Savings Plans of Nevada (the "Board"), chaired by the Nevada State Treasurer. Ascensus Broker Dealer Services, Inc. ("ABD") serves as the Program Manager.