Participants in the EdVest plan can choose from seven investment options. The most conservative option is managed by the State of Wisconsin Investment Board and invests in bonds. The other six options are managed by Strong Capital Management Inc. of Menomonee Falls. Those six investment options have different allocations of stock, bond and money market funds. The various allocations allow investors to choose the amount of risk they want to take.
Contributors qualify for state income tax deductions.
Although some states only offer Section 529 plans to residents or those who work in the state, others have opened their plans to investors nationwide. Last November, Rhode Island set off a boom when it relaunched its college savings program and marketed it nationally. Almost all the plans offer tax advantages as well as peace of mind, which is one reason they're recommended so highly by accountant Hurley, who also runs a Web site tracking and explaining Section 529 plans nationwide. But money is still flooding in, said Dale Hatch, the plan's deputy administrator. New Jersey has tried to make its savings plan less risky by promising the investments will not be lost even if the stock market crashes.