529 Plans historically have been used solely as college savings plans. In 2018, however, some of the rules around 529 plans changed and account owners can use up to $10,000 per year per beneficiary for expenses for tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school. This page is geared more specifically at college planning.
Summary
Offers an overview of college planning strategies. This includes a description of the MFS 529 Savings Plan, and its investing approach.
This also provides a listing of additional independent college resources covering costs, financial aid, scholarships, loans, grants, and more.
Keeping College in Reach
You know the importance of a college education in opening minds and doors. You also know how expensive it can be. The MFS 529 Savings Plan can help keep college in reach. 529 plans can be used to pay for tuition, fees, room, board, books, and required supplies at accredited colleges, universities, and vocational schools across the country.
Participation in a 529 plan, however, does not guarantee that contributions and the investment return on contributions, if any, will be adequate to cover future tuition and other qualified higher education expenses.
Systematic investing adds up over time
College costs can be overwhelming today. But there are smart ways to work toward making college a reality, such as taking advantage of a systematic investing program. It enables you to invest a set amount of money on a regular schedule.
Maintain a balanced portfolio
For many investors, one of the main factors in determining a long-term, sound investment plan is asset allocation — how you allocate your money among stocks, bonds, and cash. As part of a disciplined diversification investment strategy, asset allocation enables you to follow the proven three-step process — allocate, diversify and rebalance.
Using a systematic investing program and diversification does not guarantee a profit or protect against a loss in declining markets. You should consider your financial ability to continue investing through periods of low prices. The investments you choose should correspond to your financial needs, goals, and risk tolerance. Keep in mind that all investments, including mutual funds, carry a certain amount of risk including the possible loss of the principal amount invested. For assistance in determining your financial situation, please consult an investment professional.
Additional resources
There’s a lot to know when planning for college. Additional information on financial aid, college selection, and scholarships are available on the following Web sites.
Compare the difference between the major types of education loans that are available at www.edvisors.com
Get help searching for the right college, scholarships and loans at www.collegexpress.com
Wondering if a Parent PLUS loan is right for you? Learn more about these loans at www.edvisors.com
To get expert tips on financial aid, search for scholarships and download college applications, visit www.fastweb.com
Looking for a private student loan? Find potential lenders and loan options at www.edvisors.com
Compare 529 plans, read articles, calculate education costs, and more, go to www.savingforcollege.com
Learn more about finding the right school, testing, and paying for college at www.collegeboard.com
About the MFS 529 Savings Plan
The MFS 529 Savings Plan is a flexible education savings investing plan sponsored by the State of Oregon, acting by and through the Oregon 529 Savings Board and is part of the Oregon 529 Treasury Savings Network. Sumday Administration LLC® is the Program Manager and recordkeeper of the plan while MFS Investment Management acts as the investment manager and MFS Fund Distributors, Inc., is the distributor. MFS 529 Savings Plan accounts are considered municipal fund securities.
Depending on your state of residence and the state of residence of the beneficiary, an investment in the MFS 529 Savings Plan may not afford you or your beneficiary state tax benefits or other benefits only available for investments in such state's qualified tuition program. State benefits may include financial aid, scholarship funds and protection from creditors. State tax treatment may differ from the federal tax treatment. See your tax advisor to be sure you understand the tax issues related to a 529 plan. Withdrawals of earnings not used to pay for qualified higher education expenses are subject to an additional 10% federal tax penalty. State taxes may also apply.
There is a $25 annual account fee associated with the MFS 529 Savings Plan. This fee is waived for accounts of Oregon residents and to the extent approved by the Board, subaccounts of Omnibus Accounts. Other waivers may apply. Check with your financial advisor. Investments in 529 plans involve investment risks. You should consider your financial needs, goals, and risk tolerance prior to investing.
Before investing in the MFS® 529 Savings Plan, consider the investment objectives, risks, charges, and expenses. For a prospectus or summary prospectus containing this and other information, as well as a Participant Agreement and Disclosure Statement including an Expense Overview, contact your investment professional or view online at mfs.com. Read it carefully.
MFS does not provide legal, tax, or accounting advice. Individuals should not use or rely upon the information provided herein without first consulting with their tax or legal professional about their particular circumstances. Any statement contained in this communication (or elsewhere on this web site) concerning U.S. tax matters was not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code. This communication was written to support the promotion or marketing of the transaction(s) or matter(s) addressed.
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