529 Plan: Ins and Outs of Scholars Choice
Get started planning your Education Savings with our suite of interactive tools – compare college savings vehicles, determine goals and start setting your 529 strategy for where you are, and where you want to be.
An investor should consider the Program's investment objectives, risks, charges and expenses before investing. The Program Disclosure Statement and Participation Agreement (www.scholars-choice.com/pds) contains more information and should be read carefully before investing.
If an investor and/or an investor's beneficiary are not Colorado taxpayers, they should consider before investing whether their home states offer 529 plans that provide state tax and other benefits such as financial aid, scholarship funds and protection from creditors that are only available to state taxpayers investing in such plans.
Scholars Choice: The 529 Plan
for Education and Beyond
Give More Options to Your Clients, and Yourself
Add the Scholars Choice 529 Plan, managed by Legg Mason, to your go-to list of suggested vehicles. It may have what your clients need; college savings expertise, tax advantages, account owner control and flexibility. It’s a proven plan you can be confident in — with active fund management, flexible diverse investment options, low fees and competitive pricing.
The reasons for suggesting 529 college savings will resonate with your clients. From preparing for the soaring Price of Education to Tax Planning/Advantages, to maintaining control of their investment dollars. To find materials to support your suggestions, go to our Literature section or direct your clients to our online Interactive Planning Tools.
When we work for the good of our clients, it’s good for us all. Contact Us for more information on Scholars Choice 529 College Savings Plan. We encourage you to look for ways to benefit your client, which could also help Build Your Practice.
Active Multi-Manager Approach
Scholars Choice offers a wide variety of investment options, tapping into the proven expertise of the proprietary specialist investment managers — plus non-proprietary manager Thornburg Investment Management — all employing active management.
Low Fees and Competitive Pricing Make a Difference
We make a point of keeping our 529 fees low, to keep our plan affordable and to help individuals make the most of their contribution. Fact is, we’re proud that our fees are among the lowest asset-based fees among all actively managed advisor-sold plans.1 Compare our competitive pricing:
Annual Asset-Based Fees
While the Cash Reserve Option will invest all of its assets in a money market mutual fund and will value its units based on the underlying money market fund share value, the Cash Reserve Portfolio itself is not a money market mutual fund. The Cash Reserve Option will not seek capital appreciation and may underperform other investment options. You could lose money by investing in this investment option. Although the money market fund in which your investment option invests (the “underlying fund”) seeks to preserve its value at $1.00 per share, the underlying fund cannot guarantee it will do so. An investment in this investment option is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The underlying fund’s sponsor has no legal obligation to provide financial support to the underlying fund, and you should not expect that the sponsor will provide financial support to the underlying fund at any time.
QS Investors, the Heart of Scholars Choice
Our portfolio management employs the QS process, which provides a big-picture focus that dynamically shifts market exposure - fund selection, portfolio construction, asset allocation and performance monitoring - based on investor behavior. QS oversight has allowed solid, long-term, risk-managed returns for our account owners.
Investors Styles, and Situations, Requires Options
There’s a lot that goes into deciding how to invest — flexibility is key. Explore the different Investment Options we have to help your clients invest in the portfolio that is best for them.
Letters and Notices
Tools and Calculators
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Take three simple steps toward helping your clients to achieve their investment goals.
Our products cover a variety of strategies for diverse investment needs.
Please Note: A Scholars Choice New Account Application is not required to open accounts at the following firms: Ameriprise, Merrill Lynch, Morgan Stanley
P.O. Box 219372
Kansas City, MO 64121
Please Note: Advisors should check with their Home Office to confirm Scholars Choice paperwork can be sent directly to us. Some Broker-Dealers require their Advisors to send the paperwork to the Home Office.
Be sure to check with your firm regarding internal 529 processing procedures.
1 Source: Strategic Insight, 529 College Savings Quarterly Fee Analysis - First Quarter 2018.
All investments involve risk, including loss of principal. Past performance is no guarantee of future results.
IMPORTANT INFORMATION: An investor should consider the Program's investment objectives, risks, charges and expenses before investing. The Program Disclosure Statement and Participation Agreement contains more information and should be read carefully before investing. If an investor and/or an investor's beneficiary are not Colorado taxpayers, they should consider before investing whether their home states offer 529 plans that provide state tax and other benefits benefits such as financial aid, scholarship funds, and protection from creditors that are only available to state taxpayers investing in such plans.
Investments in the Scholars Choice College Savings Program are not insured by the FDIC or any other government agency and are not deposits or other obligations of any depository institution. Investments are not guaranteed by the State of Colorado, CollegeInvest, QS Investors, LLC, Legg Mason Investor Services, LLC, or Franklin Resources, Inc., or its affiliates and are subject to risks, including loss of principal amount invested.
Franklin Resources, Inc., its affiliates, and its employees are not in the business of providing tax or legal advice to taxpayers. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties or complying with any applicable tax laws or regulations. Tax-related statements, if any, may have been written in connection with the “promotion or marketing” of the transaction(s) or matter(s) addressed by these materials, to the extent allowed by applicable law. Any such taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.
Scholars Choice® is a registered service mark of CollegeInvest. CollegeInvest and the CollegeInvest logo are registered trademarks. Administered and issued by CollegeInvest, State of Colorado. QS Investors, LLC is the Investment Manager and Legg Mason Investor Services, LLC is the primary distributor of interests in the Program; together they serve as Manager of the Program. QS Investors, LLC, ClearBridge Investments, LLC, Brandywine Global Investment Management, LLC, Western Asset Management Company, and Legg Mason Investor Services, LLC are subsidiaries of Franklin Resources, Inc. Such entities became subsidiaries of Franklin Resources, Inc. in connection with Franklin Resources, Inc.’s acquisition of Legg Mason, Inc. in a transaction that closed on July 31, 2020. Templeton Global Advisors Limited, which is part of Franklin Templeton Investments, is also an affiliate of Franklin Resources, Inc. Thornburg Investment Management, Inc. is not affiliated with Franklin Resources, Inc.
Audited financial statements for the Scholars Choice® College Savings Program, including balance sheets, income statements, cash flow statements, and the Management's Discussion and Analysis (MDA), may be viewed at https://www.collegeinvest.org/about-us/financial-statements or a hard copy may be obtained by calling Scholars Choice at 1-888-572-4652.
CollegeInvest -- a division of the Colorado Department of Higher Education, which oversees the Colorado-sponsored 529 college savings programs -- has decided to retain TIAA-CREF Tuition Financing, Inc. (“TFI”) as the successor program manager for Scholars Choice. TFI intends to utilize funds managed by Nuveen, an investment manager affiliate of TFI, in managing Scholars Choice portfolios. Legg Mason, through its subsidiaries QS Investors, LLC and Legg Mason Investor Services, LLC, will work with TFI to transfer program assets, records, and management responsibilities while continuing to provide services under the terms of the services agreement on a transition basis, until such time as the transfer is completed. The goal of the parties is to complete the transfer in or about June 2021.