Dear Bright Start College Savings Investor,
Thank you for making the important decision to invest in a student’s future through the Bright Start Direct College Savings Plan. Saving for college is the most important investment we make as a family. My office is committed to ensuring that Bright Start is an excellent value for college savers. That’s why I’m excited to announce new enhancements to the program, effective in mid-July:
Lower Costs. We have worked hard to negotiate lower fees, keeping more money in the accounts of future students. In addition, we have reduced the Bright Start Direct plan management fee by 47%, and eliminated the $10 annual fee on index portfolios.
Additional investment choice. Bright Start will expand the number of quality fund families you can choose from. We will add additional funds from Vanguard, T. Rowe Price, Dodge & Cox, DFA, and others. Additional age-based portfolios and investment options will also be added.
A New Program Manager. Through an open and competitive bid process, my office selected Union Bank & Trust as the program’s new manager. They have served in that role for the past 11 years for our Morningstar Silver Rated Advisor-Sold program, Bright Directions.
Transition Details. It’s important to note your Bright Start investments will automatically and seamlessly transition to the new portfolios. There is no action required by you. If you have any questions, contact our special transition assistance line at 844.473.8558 or visit our transition site at BrightStartTransition.com.
Same Great Tax Benefits. The newly enhanced Bright Start plan will still offer all the same great tax benefits you’re used to, including an Illinois tax deduction for contributions (up to $10,000 for individuals and $20,000 for joint filers1).
These changes will automatically become part of your account in mid-July and you’ll receive more information later this month, including a full transition guide with all of the important details. We have enclosed a Program Disclosure Statement Supplement for your review and records.
Thank you for your investment in the future of Illinois.
Sincerely,
Michael W. Frerichs | Illinois State Treasurer
[News about changes to the Illinois 529 plan]
[News about changes to the Illinois 529 plan]
I received an email about the Illinois 529 plan. Good news! Lower fees, more options!
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Re: A Letter From the Illinois State Treasurer
I just received that email too, and while the lower fees are all to the good, I am aggravated that with all their new "options" there still is nothing beyond a money market account (that they will "try" to keep from going below $1.00) for money that is needed in the very short term. Other states' 529s offer FDIC savings accounts, CDs and/or stable value funds. I don't know why Illinois won't.
Re: A Letter From the Illinois State Treasurer
I was happy to see this email. Illinois' fund expenses were already low-ish to begin with (for the Index options at least) but lower is better, I always say!
I see they changed away from Oppenheimer too. That is a good move and will make some people happy who remember when Oppenheimer screwed the pooch a few years ago.
Do we think that will mean a change in the website etc, or will they retain the same front-end and have Union Bank just take over in the background?
I see they changed away from Oppenheimer too. That is a good move and will make some people happy who remember when Oppenheimer screwed the pooch a few years ago.
Do we think that will mean a change in the website etc, or will they retain the same front-end and have Union Bank just take over in the background?
Re: [News about changes to the Illinois 529 plan]
Here's a Chicago Tribune article discussing the changes: http://www.chicagotribune.com/business/ ... story.html
There's also a web page addressing the transition: https://www.brightstarttransition.com/
The changes look very positive!
There's also a web page addressing the transition: https://www.brightstarttransition.com/
The changes look very positive!
Re: A Letter From the Illinois State Treasurer
Sure hope so...Hogan773 wrote:I was happy to see this email. Illinois' fund expenses were already low-ish to begin with (for the Index options at least) but lower is better, I always say!
I see they changed away from Oppenheimer too. That is a good move and will make some people happy who remember when Oppenheimer screwed the pooch a few years ago.
Do we think that will mean a change in the website etc, or will they retain the same front-end and have Union Bank just take over in the background?
Re: [News about changes to the Illinois 529 plan]
Among the individual fund choices, there are Vanguard 500 Index, Vanguard Total International Index and Vanguard Total Bond Market. It would be nice to have Vanguard Total Stock Market and Vanguard Mid Cap Market there as well. That would make a customized portfolio more appealing than the preselected ones.
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- Posts: 175
- Joined: Fri Sep 06, 2013 11:45 am
Re: [News about changes to the Illinois 529 plan]
Definitely good news re: fees. Received the transition brochure in the mail today and Index age based portfolios will range from .12--.13% and the Vanguard 500 Index will be .10% and the Vanguard Total Bond Index will be .11%.
Re: [News about changes to the Illinois 529 plan]
Here's additional information for those that are using the Illinois 529 plan. It's nice that they're offering a Rewards Card now. It looks like the blackout period is July 12 - 17.
https://www.brightstarttransition.com/account-owners/
https://www.brightstarttransition.com/account-owners/
Re: [News about changes to the Illinois 529 plan]
Oh! A rewards card - I didn't know about that. Will have to look into it.dignan wrote: ↑Tue Jun 27, 2017 8:07 am Here's additional information for those that are using the Illinois 529 plan. It's nice that they're offering a Rewards Card now. It looks like the blackout period is July 12 - 17.
https://www.brightstarttransition.com/account-owners/
Re: [News about changes to the Illinois 529 plan]
So it seems overall like this is a positive change? I was also wondering whether I should be worried and happy. Lower fees is always a good thing, but always a little nervous with these changes.
Re: [News about changes to the Illinois 529 plan]
These changes to IL 529 plan seem very positive. However, I can't figure out how to check portfolio performance of my 529 account in the new system. I sent them an email, but I wanted to ask if anyone here had a solution. Thanks!!