Wealthfront announced that it will soon offer the Wealthfront 529 College Savings Plan. This will make Wealthfront the first automated investment service to offer its own tax-advantaged college savings plan.

What is a 529 plan? It is an education savings plan designed to help pay for college and related qualified higher education expenses at thousands of eligible institutions.

Some of the primary benefits of a 529 plan include: saving on taxes, reducing financial aid impact, high contribution limits, and a great amount of flexibility. Earnings inside a 529 plan are deferred from federal taxes as well as most state taxes. Tax-free withdrawals are also a big benefit.

Wealthfront’s new 529 plan will allow you to create a personalized college savings plan in minutes. Wealthfront will then manage the plan for you by re-balancing your portfolio and adjusting the investment mix to a more conservative allocation as the student nears a college age. The graphic below is a good example of that.


Once the account is open, Wealthfront will recommend a monthly savings plan and allow you to setup automatic contributions into the plan if you wish.

The Wealthfront 529 College Savings Plan will also feature low costs. All-in fees will range from 0.43 percent to 0.46 percent. That is markedly lower than the average advisor sold 529 plan. Additionally, Wealthfront will not charge an advisory fee on the first $10,000 invested in the plan.


This plan is not available yet, but Wealthfront has set up a waiting list, and by entering your name and email and joining the list you can become one of the earliest users of this 529 product.

Click here to find out all about the Wealthfront 529 College Savings Plan and join the waitlist if you wish.