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TD Ameritrade Announces First 529 College Savings Plan in U.S. Offering ESG Portfolios

OMAHA, Neb.--(BUSINESS WIRE)--

New research reveals knowledge gap on 529 plans

TD Ameritrade Holding Corporation (AMTD) today announced a series of improvements to the TD Ameritrade 529 College Savings Plan effective November 18. The plan is available nationally and is one of four 529 plans offered by the Nebraska Educational Savings Plan Trust and administered by the Nebraska State Treasurer. The competitively priced plan will become the first to offer socially aware portfolios (also known as an Environmental, Social and Governance or ESG offering), along with its core traditional investing options.

“At TD Ameritrade, we are pleased to be the first to offer investors ESG portfolios as part of our updated 529 College Savings Plan,” said Dara Luber, senior manager of Retirement at TD Ameritrade. “This will be a welcome improvement for those in the thick of investing and saving college funds for their children who are seeking strategies to better align with both their investing objectives and their values. There is growing demand to invest in companies with stronger ESG practices, particularly among the younger generations.”1

While 529 savings plans can be an effective investment vehicle to help cover education expenses, confusion still abounds. According to a new survey conducted by The Harris Poll on behalf of TD Ameritrade, American parents aren’t aware of the many benefits of 529 plans:

  • Less than a third (32%) know that withdrawals from 529 plans are free from federal tax
  • Only six in 10 (59%) who have or are considering 529 plans are aware that it can cover their children’s textbooks
    • And even fewer (48%) know that it can cover school supplies
  • Just half (51%) who have or are considering 529 plans realize on-campus housing can be covered

“The lack of understanding surrounding 529 plans may factor into why six in 10 parents don’t have a 529 college savings plan and don’t plan to start one, while those who do or plan to start one lack confidence in how to take advantage of it,”2 said Luber. “At TD Ameritrade, we’re working to bridge that knowledge gap and help people better understand the choices available to them when it comes to covering education expenses.”

The redesigned plan will leverage expertise from portfolio consultant TD Ameritrade Investment Management, LLC (TDAIM) for Age-Based and Static Investment Options and will be offered through both direct-to-consumer and registered investment advisor (RIA) TD Ameritrade channels. The investment structure will remain focused on Age-Based, Static and Individual Investment Options and all funds will be nonproprietary with no annual maintenance fees and no account minimums. In addition, Age-Based and Static Investment Options will now all be passive investments.

The TD Ameritrade 529 College Savings Plan (the "Plan") is sponsored by the State of Nebraska and administered by the Nebraska State Treasurer. The Plan offers a series of investment portfolios within the Nebraska Educational Savings Plan Trust (the "Trust"), which offers other investment portfolios not affiliated with the Plan. Nebraska Educational Savings Plan Trust serves as Issuer. The Plan is intended to operate as a qualified tuition program to be used only to save for qualified higher education expenses, pursuant to Section 529 of the U.S. Internal Revenue Code.

An investor should consider the Plan’s investment objectives, risks, charges and expenses before investing. The Program Disclosure Statement at https://www.tdameritrade.com/account-types/education/529-plans.page, which contains more information, should be read carefully before investing.

Investors should consider before investing whether their or their beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarships funds, and protection from creditors that are only available for investments in such state’s qualified tuition program and should consult their tax advisor, attorney and/or other advisor regarding their specific legal, investment or tax situation.

Participation in the Plan does not guarantee that contributions and the investment return on contributions, if any, will be adequate to cover future tuition and other higher education expenses, or that a beneficiary will be admitted to or permitted to continue to attend an eligible educational institution.

Investments in the TD Ameritrade 529 College Savings Plan are not guaranteed or insured by the FDIC or any other government agency, and are not deposits or other obligations of any depository institution. Investments are not guaranteed or insured by the State of Nebraska, the Nebraska State Treasurer, the Nebraska Investment Council, First National Bank of Omaha, TD Ameritrade, TD Ameritrade Investment Management, LLC or their authorized agents or their affiliates, and are subject to investment risks, including loss of the principal amount invested.

The Nebraska Educational Savings Plan Trust serves as Issuer. The Nebraska State Treasurer serves as Trustee and First National Bank of Omaha serves as Program Manager, First National Capital Markets, Inc. serves as Distributor, Member FINRA, SIPC. TD Ameritrade, Inc. serves as sub-administrator. TD Ameritrade Investment Management, LLC serves as Portfolio Consultant. First National Capital Markets and First National Bank of Omaha are affiliates.

TD Ameritrade, Inc. renders certain marketing and administrative services to the TD Ameritrade 529 College Savings Plan. TD Ameritrade Investment Management, LLC renders portfolio consulting services to First National Bank of Omaha and the Nebraska Investment Council.
TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and the Toronto-Dominion Bank. All rights reserved. Used with Permission.
Investment Products: Not FDIC Insured. No Bank Guarantee. May Lose Value

Source: TD Ameritrade Holding Corporation

About TD Ameritrade Holding Corporation
TD Ameritrade provides investing services and education to approximately 12 million client accounts totaling approximately $1.3 trillion in assets, and custodial services to more than 7,000 registered investment advisors. We are a leader in U.S. retail trading, executing an average of approximately 800,000 trades per day for our clients, more than a quarter of which come from mobile devices. We have a proud history of innovation, dating back to our start in 1975, and today our team of 10,000-strong is committed to carrying it forward. Together, we are leveraging the latest in cutting edge technologies and one-on-one client care to transform lives, and investing, for the better. Learn more by visiting TD Ameritrade’s newsroom at www.amtd.com, or read our stories at Fresh Accounts.

About The Harris Poll
The Harris Poll is one of the longest-running surveys in the U.S., tracking public opinion, motivations and social sentiment since 1963. It is now part of Harris Insights & Analytics, a global consulting and market research firm that strives to reveal the authentic values of modern society to inspire leaders to create a better tomorrow. We work with clients in three primary areas; building twenty-first-century corporate reputation, crafting brand strategy and performance tracking, and earning organic media through public relations research. Our mission is to provide insights and advisory to help leaders make the best decisions possible. The Harris Poll is separate from and not affiliated with TD Ameritrade, which is not responsible for their services or policies.

Survey Methodology
This survey was conducted online within the United States by The Harris Poll on behalf of TD Ameritrade from August 8-14, 2019, among 1,015 U.S. adults aged 23 and older with at least $10,000 in investable assets. Key populations include: 484 parents with children under the age of 18; 274 parents with children 18 and older. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated.

1 https://s1.q4cdn.com/959385532/files/doc_downloads/research/2018/Socially-Responsible-Investing-Survey_research-data.pdf
2 https://www.amtd.com/files/doc_news/research/2019/college-savings-survey.pdf

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