Ohio 529 College Savings Plan CollegeAdvantage $50 Promotion Bonus

If you are considering a 529 college savings account for your child, there is a promotional offer that could get you a good start.

Ohio 529 College Savings Plan, rated as one of the best 529 college savings plans by Morningstar multiple times,  is offering a $100 bonus for its popular CollegeAdvantage 529 plan. From now to November 18, 2011, if you open a new CollegeAdvantage direct account and make at least $100 deposit, then you will receive the $50 bonus around March 15, 2012. The requirement of a new direct account means that if you open an account through, say, a broker or an adviser, then you are not eligible for the bonus. As you may know, CollegeAdvantage is a direct sold 529 plan, meaning that you can open your account directly with the plan  administrator, the Ohio Tuition Trust Authority and there’s no need to use a broker or adviser. Once you open an account before the deadline, all you need to do is making a deposit of $100 or more. That’s it. The process is rather simple, but you do have to wait until next March to see the bonus in your account. So that’s a bit long.

I have been a customer of Ohio CollegeAdvantage plan since early 2007 and am quite pleased with the selection and performance of the funds, as well as the administration of the plan. Since joining the plan four years ago, I have seen CollegeAdvantage reduced administrative fees of its funds and offered sign-up bonus multiple times to attractive new customers, all done without hurting the plan’s overall rating. As Morningstar pointed out when recognizing CollegeAdvantage as one of the best 529 plans that, by managing the plan directly, the Ohio Tuition Trust Authority is able to reduce costs of the plan’s large selection of investment options that include mutual funds (from Vanguard), bonds (from PIMCO), and CDs. These funds, containing both active funds and index funds, are constructed into four age-based portfolios that allocate stock and bond funds in the portfolio based on the account beneficiary’s time frame of entering college. If you prefer, you can also build your own portfolio by choosing each individual fund the plan has to offer, giving you a lot of flexibility and control of what and how to invest.

Also, since CollegeAdvantage is nationally available, you can join the plan regardless your residence, even though out-state participants won’t enjoy some tax benefits as residents of the state of Ohio do. I opened my account in 2007 when we lived in New Jersey and I chose CollegeAdvantage over NJ 529 plan because of its selection, cost and performance. Tax benefit is a consideration when selecting a 529 plan, but it’s not a deciding factor, at least that’s the case for me.

If you are interested, you can go to Ohio CollegeAdvantage to open an account using promo code KIDS and get $50 bonus for free.

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