For Parents
You can open a Franklin Templeton 529 College Savings Plan, offered nationwide by the New Jersey Higher Education Student Assistance Authority (HESAA),1 for as many children as you want, with a minimum investment of only $250 per child. You can continue contributing up to a maximum plan value of $305,000 for each child.
You retain control over the plan, with the flexibility to change beneficiaries at any time to any family member. This means if one child decides against attending college, the plan can be earmarked for another person in the beneficiary's family.
While it's hard to find extra dollars to set aside in the typical family's budget, taking this important step today could be especially rewarding tomorrow.
Put time on your side
Starting your investment program early can give you the benefit of tax-advantaged compounding.
| Monthly Investment | 5 Years | 10 Years | 18 Years |
|---|---|---|---|
|
Each plan account is subject to a $25 annual maintenance fee, an annual program management fee of 0.40% of assets, underlying fund expenses, currently up to 0.87% of assets, which may vary, and sales loads and annual and deferred sales charges, which vary by class of shares. See the Investor Handbook for more complete information. Tax benefits are conditioned on meeting certain requirements. Federal income tax, a 10% federal tax penalty, and state income tax and penalties may apply to nonqualified withdrawals of earnings. Generation-skipping tax may apply to substantial transfers to a beneficiary at least two generations below the contributor. See the 529 plan disclosure document for more complete information. Graph represents how monthly investments would grow over time periods shown before any tax, assuming investments compound monthly at a 8% annual rate of return. The graph is for illustrative purposes only and does not reflect any particular investment or fees and expenses which, if reflected, would lower the results shown. The principal value of investments is not guaranteed, and you may have a gain or loss on the amount invested. Periodic investment plans do not assure a profit and do not protect against loss in a declining market. Since such plans involve continuous investment in securities regardless of their fluctuating price levels, it's prudent to consider your financial ability to continue making purchases through periods of low price levels. |
|||
| $500 | $36,983 | $92,083 | $241,643 |
| $300 | $22,190 | $55,250 | $144,986 |
| $100 | $7,397 | $18,417 | $48,329 |
| $50 | $3,698 | $9,208 | $24,164 |
| $25 | $1,849 | $4,604 | $12,082 |
The main benefit of starting early is harnessing the power of compounding. Combining the power of compounding with the benefits of federal tax-advantaged investing can really help plan earnings increase. The following chart shows how tax-free compounded growth can help your money grow.
| Years of Growth | Value of Tax-Free Investment | Value of Taxable Investment | Dollar Difference |
|---|---|---|---|
|
Each plan account is subject to a $25 annual maintenance fee, an annual program management fee of 0.40% of assets, underlying fund expenses, currently up to 0.87% of assets, which may vary, and sales loads and annual and deferred sales charges, which vary by class of shares. See the Investor Handbook for more complete information. Chart assumes monthly compounding at a 8% annual rate of return, that contributions were made at the beginning of the year, that a 25% federal tax rate applies to annual income on the taxable investment at the end of the year, that principal and income do not vary and, for the tax-free investment, that earnings are tax free for the entire period. Examples do not reflect any particular investment or fees and expenses which, if reflected, would lower the results shown. Periodic investing plans do not assure a profit and do not protect against loss in a declining market. Since such plans involve continuous investment in securities regardless of their fluctuating price levels, it's prudent to consider your financial ability to continue making purchases through periods of low price levels. |
|||
| 5 years | $14,898 | $13,525 | $1,374 |
| 10 years | $22,196 | $18,292 | $3,904 |
| 18 years | $42,006 | $29,654 | $12,352 |
Important Legal Information
Investors should carefully consider plan investment goals, risks, charges and expenses before investing. To obtain an Investor Handbook, which contains this and other information, talk to your financial advisor, go to the Order 529 Literature section on this website, or call Franklin Templeton Distributors, Inc., the manager and underwriter for the plan, atFootnotes
- Offered and administered by the New Jersey Higher Education Student Assistance Authority (HESAA); managed and distributed by Franklin Templeton Distributors Inc., an affiliate of Franklin Resources, Inc., which operates as Franklin Templeton Investments. No federal or state guarantee. Principal value may be lost, and investing in the plan does not guarantee admission to college or sufficient funds for college. Please refer to the Investor Handbook for more complete information.
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For U.S. residents only.