Fewer Fees for Education Savings with DE529

State continues to have one of the lowest-cost investment plans

Treasurer Colleen C. Davis announced today a reduction in fees for Delaware’s 529 Education Savings Plan. Already one of the nation’s lowest-cost savings plans, the reduction is estimated to save participants nearly $87,000 total each year and further incentivize new account openings in the Delaware plan.

“Helping our residents spend less to save is so important. Education is already expensive, and now participants can keep more of their investment earnings to use towards those costs,” said Treasurer Davis. “With no minimum to open an account, and some of the lowest fees nationwide, we’re working to make sure that people of all income levels can save for a better future.”

Fees vary based on the participant’s investment strategy and are collected to administer the plan. Participants do not need to take any action for the fee reduction, which began October 1.

The number of accounts in the Delaware 529 Plan have grown by 4% over the last three years, outpacing the industry nationwide. Nearly 22,000 accounts in the plan hold more than $686 million in investments.

Delaware’s 529 is a tax-advantaged savings plan that is available to the public, easy to open, and offer investment options so that savings may grow over time until they are used for associated costs including tuition, books, housing, apprenticeships and more. Learn more about at 529.Delaware.Gov.


Bill Signing Promotes Savings in the First State

Senate Bill 143, signed today by Governor Carney, will increase savings plans education

 

Treasurer Colleen C. Davis, bill sponsors Sen. Trey Paradee and Rep. Krista Griffith, and children from Brilliant Little Minds Learning Academy celebrated today as Governor John Carney signed Senate Bill 143 into law. This legislation allows the Plans Management Board and the Office of the State Treasurer to increase awareness of the benefits of saving through the 529 Education Savings Plan and through ABLE Plans for those with disabilities.

Also joining the event were Lt. Governor Bethany Hall-Long, Insurance Commissioner Trinidad Navarro, Secretary of Finance Rick Geisenberger, Rep. Mike Smith, Rep. Bryan Shupe, and members of the Delaware Department of Education and the Plans Management Board. The Governor and legislators talked about their own experiences with the savings plans and discussed the importance of the bill. Treasurer Davis asked the kids from Brilliant Little Minds Learning Academy what they want to be when they grow up. “Whatever you want to be when you grow up, you have to work hard in school and save your money to make it happen. I’m so glad that we could have young people here with us as we take this step towards expanding economic opportunity and educational attainment.”

Senate Bill 143 allows the Board to pursue methods of increasing savings plan enrollments outside of the high-income earning households that traditionally participate by allowing for incentive-based marketing. Possible avenues of promotion include a scholarship program or a match plan, as seen in other states. These options will be explored by the Board at future meetings. Additionally, new promotions aimed at increasing awareness of using 529s for adult educational attainment and for non-college costs, such as apprenticeship programs, will be integrated into future marketing efforts.

“The costs of education are skyrocketing, but national enrollments in 529 plans have gone down,” Treasurer Davis said. “In Delaware, we have worked hard to share the benefits of these plans with our residents and are continuing to see new enrollments. Our nearly 22,000 accounts represent growth of 4% over the last three years, and this bill will allow us to continue to expand. Like these savings plans, Senate Bill 143 is an investment in our future.”

“America is facing a crisis when it comes to saving money for the future,” said Sen. Trey Paradee, D-Dover, who works as a financial advisor. “Right now, 40 percent of U.S. adults don’t have enough savings to cover even a $400 emergency – a brutal fact, which is leaving too many families one missed paycheck from a financial nightmare. We need to be doing all we can to encourage people to take advantage of savings plans, particularly the favorable products offered by our state. This bill is aimed at raising awareness of those products and examining how we can better position them to help working families in need.”

“Given the daunting cost of college education, the state of Delaware needs to do everything it can to promote college savings. Delaware has made great strides in creating accounts for those for disabilities, which will allow them to save money without sacrificing services they depend on,” said Rep. Krista Griffith, D-Fairfax. “This bill will allow Treasurer Davis to increase outreach about Delaware’s 529 plan and make more Delawareans aware of the benefits so they can invest and plan for their futures. I’m always looking to help improve accessibility to these accounts and I look forward to continued efforts in the General Assembly.”

Both tax-advantaged savings plans are available to the public, easy to open, and offer investment options so that savings can grow over time until they are used for associated costs. Learn more about our savings plans at 529.Delaware.Gov and ABLE.Delaware.Gov.


DNREC’s Division of Parks & Recreation encourages the public to ‘Plan for Vacation Day’ today

DOVER – Have you planned your vacation yet? DNREC’s Division of Parks & Recreation encourages you to mark Tuesday, Jan. 29, on your calendars, to join “National Plan for Vacation Day,” reminding Delawareans and out-of-state visitors to beat the crowds and plan their park visits at the start of the year.

Visitors can discover a world of possibilities for vacationing at Delaware’s state parks. You can soak up the sun on a vacation to Cape Henlopen State Park, named one of the most scenic state parks in the country by USA Today. For more fun in the sun, enjoy Delaware Seashore or Fenwick Island state parks. Or, paddle your way through the baldcypress trees at Trap Pond State Park, soar through the trees with GoApe!Treetop Adventure at Lums Pond State Park, or make a splash at the Killens Pond State Park’s Water Park.

“The fact that a record 108,256 nights of lodgings were booked last year, up three-and-a-half percent, is a testament to the excellence of our award-winning state parks,” said DNREC Secretary Shawn M. Garvin. “This is a good reason for Delawareans – and out-of-state-visitors – to plan their vacations in our state parks early, and not wait till warm weather, so they won’t miss out on the adventures and experiences that await in our 17 parks throughout the state.”

Perhaps best of all, the Division of Parks & Recreation is offering 50 percent savings on weeknight camping, cabin or yurt stays through May 15, which can be used now. Just enter the code SMORES5019 at checkout to take advantage of the offer. Some restrictions may apply, so learn more on www.destateparks.com.

A recent study by the U.S. Travel Association found that 54 percent of Americans don’t use all of their vacation time each year, leaving 659 million paid vacation days unused. Aside from letting earned vacation days go to waste, studies have found that vacation is essential for strong bonds with family and friends, a productive workforce, and a fulfilled life.

So what are you waiting for? Plan your vacation now at Delaware’s state parks and take advantage of the 50 percent savings.

Contact: Beth Shockley, DNREC Public Affairs, 302-739-9902

Vol. 49, No.15