College savings plans, much like the students they support, must evolve to meet the challenges of tomorrow. Many of our clients have invested in the Illinois Bright Start College Savings Plan for many clients. For Bright Start 529 College Savings Plan account holders, a change has occurred – there is now a new program manager, ushering some updates that could impact your college savings strategy.
This transition isn’t merely a bureaucratic shuffle; it’s a transformation designed to enhance the client investment experience. Lower fees, updated investment menus, and a modernized account management system are just the tip of the iceberg. But what do these changes really mean for you and the educational future you’re saving for? Let’s unpack the details and illuminate the path forward for your college savings journey.
Key Changes Coming to Bright Start 529
1. New Program Manager
Starting September 25, 2024, the Bright Start Direct-Sold College Savings Program is under new management. While the core mission of helping you save for education remains unchanged, this shift brings with it a suite of improvements aimed at maximizing the value of your investments.
2. Lower Fees
One of the most immediate and tangible benefits of this transition is a reduction in fees. Lower fees mean more of your money stays invested, potentially growing your college savings at a faster rate. It’s a simple change that could have a compound effect on your account’s long-term performance.
3. Investment Menu Updates
When the transition occurred, all accounts were moved to an extremely similar asset allocation compared to the prior plan. However, the transition brought updates to the investment menu. This could mean new investment options, changes to existing portfolios, or both. It’s an opportunity to reassess your investment strategy and ensure it aligns with your goals and risk tolerance.
4. Modern Account Management
Say goodbye to outdated interfaces and hello to a streamlined, user-friendly account management system. This upgrade promises to make monitoring and managing your 529 plan easier and more intuitive than ever before.
Important Actions
- Re-establish Online Account Access: You must set up your online account again at BrightStart.com.
- Update Bill Pay: If you use bill pay, update your bank with your new 11-digit account number and address after September 30.
- Download the READYSAVE™ 529 App: This new app will be available for account management on the go.
- Ugift® Transition: The gifting tool is changing from GiftED to Ugift®. You’ll need to update any shared gifting invitations.
What These Changes Mean for You
These updates to the Bright Start 529 plan are designed to provide you with a more efficient, cost-effective, and user-friendly college savings experience. Lower fees could potentially lead to higher returns over time. The updated investment menu might offer new opportunities to optimize your savings strategy. And the modernized account management system should make it easier to stay on top of your investments.
However, it’s important to remember that with any financial transition, there may be short-term inconveniences as systems update and new processes are implemented. The temporary freeze on transactions and account changes around the transition date is a prime example. Planning ahead and staying informed will be key to navigating this change smoothly.
Need Help???
Let us know if you want to chat! Whether you need help understanding the new investment options, want to reassess your contribution strategy in light of the fee reductions, or simply want to better understand how these changes affect your long-term plans, we’re here to help.
