"NO BULL" INVESTING FOR COLLEGE AND RETRIEMENT UPDATE

Since our last look at College 529 Savings plan, changes in tax laws have added to their appeal. The Pension Protection Act of 2006 made permanent the investor’s ability to withdraw earnings in 529 plans tax free. Also management improvements and fee reductions show that states are getting more competitive in reaching investors saving for college.

Fees charged by plans still vary widely across states. Annual fees typically are the sum of a percentage of account balances times a management fee percent, plus a fee paid the management of each fund held by the client.

Following is a comparison of fees charged for a $50,000 account by some of the plans offered by brokerages in our area. Note for example the Merrill Lynch (Maine) account may be costing as much as $1,350 in annual fees. A similar fund with Utah Education Savings Plan may cost as little as $135, a different of $1,215 per year !!!!

An annual investment of $1,215 returning 8% annually would be worth about $33,000 in 15 years. That should be at least book money !!!

Please ask your broker why he chose the 529 plan he sold you … Ask why not Utah, or one of the other low cost funds, for YOUR MONEY

Respectfully,
Mike Ancona (908) 322-9200

PS We’re excited about the Investment Mirror™, a new proprietary tool we’ve created that allows you to plan, monitor and maintain all your investments on a single page. . . .We offer it, without additional charge, to our comprehensive planning clients. Please visit our web site to learn how the "Mirror" and our Financial Diagnostic could simplify and focus your financial world. As always, call us with questions and comments.

PPS Please scroll down for 529 fee comparisons

Illustration of Annual Fees Charged by 529 College Saving Plans
	Annual		Annualized		Fees on		Total Annual Fees
	Maint.	+	Asset-based	+	Underlying	=	on balance of
	Fee (1)		Mgt Fee		Investments(2)		$50,000
Utah's			0.25%	+	0.02% to 0.14%	=	$135 to $196
Ed. Savings Plan
Merrill Lynch	$50	+	0.50%	+	0.81% to 2.0%	=	$755to $1350
NextGen
Morgan Stanley	$30	+	0.50%	+	1.17% to 1.71%	=	$895 to $1165
College SAVE
Legg Mason			0.72% to 2.23%	+	0.65% to 1.07%	=	$685 to $1650
Core4College
NJ BEST			0.40%	+	0.45% to 0.84%	=	$425 to $620
Franklin
Tempelton
New York State(3)			0.58%	+	N/A (4)	=	$580
Upromise
& Vanguard
(1) waived under certain circumstances
(2) vary for other product offerings by each  vendor
(3) NY includes all fees in Asset-Based Mgt number
(4) NYS taxpayer may be able to deduct a portion of 529 contributions
SOURCES: Company Prospectus and SavingforCollege.com