Significant Enhancements to ScholarShare College Savings Plans

Education is a key component of sustainble community in our urban, global economy. Savings plans can make it possible for more youth. Here's a program worth considering.


November 16, 2006 -- ScholarShare, launched by California Treasurer, Phil Angelides in 1999, helps families meet the rising cost of college by offering a tax-advantaged 529 college savings program. Now, ScholarShare will offer families lower fees, more investment options, and easier access to account information.

Under the enhanced ScholarShare Direct Plan, fees will start as low as 50 basis points (.5 percent or $5 per $1,000 invested) for index fund portfolios. Families can choose from a wide range of investment strategies, including two age-based options, six static portfolios, five individual fund portfolios and the Social Choice Portfolio, and can choose from index and actively managed portfolios.

With the ScholarShare Direct Plan, families will have access t complimentary, unlimited college planning and investment guidance services. Fidelity representatives provide account assistance and discuss college planning needs and financial goals at 22 investment centers throughout California, online, or by phone 24/7.

Fidelity offers College Planning seminars throughout California to help families learn about college costs and college savings options and ScholarShare Advisor College Savings Plan, that are available through financial advisors.

Fidelity also offers the Fidelity Investments 529 College Rewards American Express Card that lets families earn 1.5% on eligible retail purchases, accumulating Rewards Points that are converted to "Fidelity 529 Dollars" when deposited in a 529 account. Accounts may be opened with as little as $50, or $15 if an automatic investment plan is set up.

The ScholarShare Direct Plan does not have an income limit and offers a high maximum contribution limit of $300,000.

Launched in 1999, the program has since grown to more than 178,000 accounts and more than $2 billion in assets.