iShares, a global leader in Exchange Traded Funds, and the iShares 529 Plan celebrate 529 Day in Arkansas on May 29th by encouraging prospective college and vocational school students and their parents to play an active role in saving now, for education later. Arkansas Governor Mike Beebe officially designated May 29, 2012 as the state’s College Savings Awareness Day.
The iShares 529 Plan, a college savings plan which allows families to save and invest funds for higher education in a tax-advantaged account, notes that with student debt topping $1 trillion in the U.S.1, families must be better informed about the opportunities they have to save ahead – to save a dollar today, in order to reduce the need to borrow a dollar tomorrow.
Tuition has increased by more than 600% over the past 30 years, and nearly 30 percent of borrowers who started school in 2003 dropped out within six years, with lack of funding playing a large role.2 Students who save more and borrow less are more likely to finish school and capture higher paying jobs with the help of their degree.
“529 Day is an important time to take a step back and consider just how difficult it can be for families to keep saving for college top of mind,” said Raman Suri of BlackRock, co-distributor of the iShares 529 Plan. “With student debt an audible part of the national conversation this year, families should know that every dollar they invest ahead of time helps translate into less debt further down the line.”
Treasurer Martha Shoffner, who oversees Arkansas’s 529 Plans in her role as chairperson of the state’s Section 529 Plan Review Committee, added: “Arkansas families face plenty of challenges every day, and they are all working to overcome those obstacles and build a bright future. Saving for college is a crucial piece of achieving that goal, and we welcome 529 Day as an opportunity to remember just how far education can bring us.”
As a savings plan created specifically to help students and their families fund higher education, the iShares 529 Plan has grown steadily since it was first introduced. In fact, growth rate on the assets in the Plan have more than doubled every year since inception3. And because of its flexibility, transparency, and low fees, the Plan was just one of two advisor-sold 529 plans to earn an “Above Average” rating among 23 advisor sold plans rated in Morningstar’s annual 529 Industry Survey in 2011.4
Arkansas offers a state income tax deduction of up to $5,000 a year ($10,000 for married couples) to families who contribute to an Arkansas-sponsored 529 Plan account.5
As part of its ongoing support of educational and artistic endeavors in Arkansas, the iShares 529 Plan will serve as a Premiere Sponsor of the 2012 Little Rock Film Festival from May 29 – June 3.
About the iShares 529 Plan: The iShares 529 Plan is a college savings plan sponsored by the State of Arkansas. It is available through financial advisors, and is the only 529 plan with all Exchange Traded Funds as the underlying investments. With Exchange Traded Funds at its core, the iShares 529 Plan breaks new ground in the 529 plan arena by offering attractive benefits, including low expenses and transparency. For more information about the iShares 529 Plan, please visit www.ishares529.com.
About BlackRock: BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At March 31, 2011, BlackRock's AUM was $3.684 trillion. BlackRock offers products that span the risk spectrum to meet clients' needs, including active, enhanced and index strategies across markets and asset classes. Products are offered in a variety of structures including separate accounts, mutual funds, iShares® (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. Headquartered in New York City, as of March 31, 2011, the firm has approximately 9,900 employees in 27 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company's website at www.blackrock.com
About iShares: iShares is the global product leader in exchange traded funds with over 500 funds globally across equities, fixed income and commodities, which trade on 20 exchanges worldwide. The iShares Funds are bought and sold like common stocks on securities exchanges. The iShares Funds are attractive to many individual and institutional investors and financial intermediaries because of their relative low cost, tax efficiency and trading flexibility. Investors can purchase and sell shares through any brokerage firm, financial advisor, or online broker, and hold the funds in any type of brokerage account. The iShares customer base consists of the institutional segment of pension plans and fund managers, as well as the retail segment of financial advisors and high net worth individuals.
For more information about the iShares 529 Plan, contact your financial advisor, call 1-888-529-9552 or visit www.ishares529.com to obtain a Program Description and Participation Agreement which includes investment objectives, risks, charges, expenses, and other important information; read and consider it carefully before investing or sending money. Upromise Investments, Inc. Co-Distributor and Underwriter; BlackRock Investments, LLC, Co-Distributor.
If you are not an Arkansas taxpayer, consider before investing whether your or the designated beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program.
The iShares 529 Plan is a college tuition savings program sponsored by the State of Arkansas and is administered by The Arkansas 529 Plan Review Committee (Committee). Upromise Investments, Inc. (UII), and Upromise Investment Advisors, LLC (UIA), serve as the Program Manager and Recordkeeping and Servicing Agent, respectively, with overall responsibility for the day-to-day operations, including marketing and co-distribution of the iShares 529 Plan. BlackRock Investments, LLC, also has responsibility for co-distribution of the iShares 529 Plan. BlackRock Institutional Trust Company, N.A., serves as Investment Manager of the iShares 529 Plan except for the Savings Portfolio, which is managed by Sallie Mae Bank. The iShares 529 Plan’s Portfolios invest in either (i) exchange traded funds; or (ii) a Federal Deposit Insurance Corporation (FDIC)-insured omnibus savings account held in trust by the Committee at Sallie Mae Bank. Upromise, Inc., UII, UIA and Sallie Mae Bank are affiliates. Units of the Portfolios are municipal securities, are not exchange traded funds, and the value of units will vary with market conditions.
Investment returns will vary depending on the performance of the Portfolios you choose. Except to the extent of FDIC insurance available for the Savings Portfolio, you could lose all or a portion of your money by investing in the iShares 529 Plan, depending on market conditions. Account Owners assume all investment risks as well as responsibility for any federal and state tax consequences.
The Aggregate balance of all 529 Plan accounts sponsored by the State of Arkansas for the same designated beneficiary may not exceed $366,000.
A periodic plan of regular investment cannot assure a profit or protect against a loss in a declining market.
Neither BlackRock, Inc., and its affiliates nor Upromise and its affiliates provide tax advice. Please note that (i) any discussion of U.S. tax matters contained in this communication cannot be used by you for the purpose of avoiding tax penalties; (ii) this communication was written to support the promotion or marketing of the matters addressed herein: and (iii) you should seek advice based on your particular circumstances from an independent tax advisor.
BlackRock Institutional Trust Company, N.A., and BlackRock Investments, LLC, are subsidiaries of BlackRock, Inc., none of which is affiliated with Upromise.
© 2012 BlackRock, Inc. Upromise and the Upromise logo are registered servicemarks of Upromise, Inc. iShares® and BlackRock® are registered trademarks of BlackRock, Inc., or its subsidiaries. All other trademarks, servicemarks or registered trademarks are the property of their respective owners. 529-0250-0512
* Not FDIC Insured (except for the Savings Portfolio) * No Bank, State or Federal Guarantee * May Lose Value
About the Little Rock Film Festival: The annual Little Rock Film Festival showcases the best in Narrative, Documentary, and Short films from around the World, as well as parties, panels, workshops, and youth programs. It offers cash and awards for the top films in each category, and also devotes programs and prizes specifically for Southern and Arkansas films. Founded in 2005 by Little Rock natives and Documentary Filmmakers Brent and Craig Renaud, along with Owen Brainard and Jamie Moses, the LRFF is committed to promoting the film industry in Arkansas and partnering with local organizations and businesses in continuing the growth and development of Downtown Little Rock. For information about the Little Rock Film Festival please visit www.littlerockfilmfestival.org.
1 Student loan debt tops $1 trillion, Josh Mitchell and Maya Jackson-Randall, The Wall Street Journal, March 22, 2012
2 Buried in debt, and no degree to show for it, Erik Zlomek, Bloomberg Businessweek, April 23, 2012
3 Source: BlackRock. 12/31/2010
4 2011 529 College Savings Plans Research Paper and Industry Survey, Morningstar Funds Research, October 2011
5 Contributions to the Plan in a tax year are deductible from Arkansas state income tax, subject to recapture in subsequent years in which non-qualified withdrawals or a rollover out to another state’s 529 plan is made.
Contacts:
For iShares
Christine Hudacko,
415-670-2687
christine.hudacko@blackrock.com
