SSgA launches Upromise 529 Plan

April 17, 2012 (PLANSPONSOR.com) -  State Street Global Advisors (SSgA) launched SSgA Upromise 529 Plan. 
 

The launch of SSgA Upromise 529 Plan also marks a new arrangement with the state of Nevada and Upromise Investments, Inc. 

The Plan is designed to lower costs and simplify investment choices. The SSgA Upromise 529 Plan features investment strategies that will be implemented using State Street’s SPDR exchange-traded funds (ETFs).

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“We’re excited to partner with Nevada and Upromise Investments, Inc. to offer SPDR ETF investments to American families looking to enhance their college savings strategies,” said James Ross, senior managing director and global head of SPDR Exchange-Traded Funds at State Street Global Advisors. “The SSgA Upromise 529 Plan combines the benefits of State Street’s institutional asset management with SPDR ETFs to offer advisers and investors innovative college savings solutions at significantly lower costs.”

Nevada’s direct-sold Upromise College Fund 529 Plan has been renamed the SSgA Upromise 529 Plan, and will continue to be direct-sold as well as available through fee-based registered investment  advisers. The plan includes new portfolio options managed by SSgA’s Investment Solutions Group, a team of investment professionals who develop customized solutions for specific needs. The group specializes in managing and advising investors on asset allocation, risk management, portfolio construction and plan implementation.  Upromise Investments, Inc. will remain as the program manager.

“Closing the college savings gap and securing a better future for the next generation requires a team effort,” said Nevada State Treasurer Kate Marshall.  “We’re excited to bring State Street’s sophisticated institutional investment management expertise and industry-leading SPDR ETFs to families saving for college through the SSgA Upromise 529 Plan.”

The SSgA Upromise 529 Plan’s investment solutions include:

•  College date portfolios designed to make investing easy by selecting the year in which the beneficiary is expected to start college. The plan’s seven college date portfolios are tactically managed to make changes to each portfolio’s asset allocation, within an allowable range, in response to changing market conditions. Powered by multiple SPDR ETFs and an SSgA money market mutual fund, where applicable, each portfolio is managed to become more conservative as the expected college enrollment date nears.  

•  Risk-based portfolios are tailored to match an investors’ risk tolerance. The plan features three portfolios (conservative, moderate and aggressive) that employ a tactical asset allocation strategy designed to identify opportunities and manage risk. The funds underlying the risk-based portfolios include multiple SPDR ETFs and, where applicable, an SSgA money market mutual fund.  

•  Static portfolios (accessing individual SPDR ETFs) are for investors and fee-based advisers seeking the flexibility to build and maintain customized portfolios. Investors and advisers can choose from 15 SPDRETFs with precise, cost-effective access to an array of domestic and international asset classes.

•  Savings Portfolio includes a Federal Deposit Insurance Corporation (FDIC)-insured savings portfolio, which invests 100% of its assets in the Sallie Mae High-Yield Savings Account (HYSA).

For more information on the SSgA Upromise 529 Plan, visit www.ssga.upromise529.com.

 

Confidence in Retirement Savings Drops Slightly

April 17, 2012 (PLANSPONSOR.com) - Confidence in retirement savings and overall financial security both dropped one point, to 57% and 41%, respectively, according to Country Financial’s Security Index.
 

The bimonthly survey showed a slight uptick, to 66.2 points in financial security sentiments—the fourth consecutive increase in financial security sentiments, the longest in the five years Country Financial has been producing the report.

Improvements in savings and optimism about college funding helped to drive the overall increase. Of survey respondents, 53% were able to set aside money for savings, a three-point increase from February, the largest number able to save since October 2008.

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The number of people who expressed confidence in their ability to send their children to college jumped five points, to 61%.

Despite these gains, Americans seem undecided about the future of their financial security.

Americans who said their overall level of financial security was getting worse inched up two points, to 39%.

 

 

"With both gains and declines, the data seems to show cautious optimism. Americans might be unsure what shape economic recovery will take, which could be fueling their desire to save," said Keith Brannan, vice president of financial security planning at Country Financial.

More than any other age group, 40- to 49-year-olds exhibited strong optimism in both their short- and long-term money matters. Confidence in retirement and those who rate their overall financial security for 40- to 49-year-olds were both up six points, to 57% and 41%, respectively.

Eighty-one percent were confident in their ability to pay debts, up nine points. There was also a 13-point jump, to 58%, in those able to set aside money for savings.

Sixty-four percent were confident in their ability to send their children to college, a 12-point increase from February.

The index is an aggregate of various factors comprising financial security including savings and investments, financial planning, retirement, education and asset protection. It is compiled by the independent research firm Rasmussen Reports LLC, based on a national telephone and online survey of at least 3,000 Americans.

For more information on the Index, visit www.countryfinancialsecurityindex.com. 

- Jill Cornfield  

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