529 Challenge

Start Saving for College Today

We’re on a Mission to Help Busy Families
Start Saving for College

The 529 challenge seeks to educate parents on saving for college and guide them through the account opening process – so they can start saving and feeling confident about the future.

+ What We Do

The 529 Challenge is a free service offered by Navwell Advisors to assist parents in setting up direct 529 college savings accounts. For New York State residents, this is the plan that is managed by Vanguard and offered through www.NYSaves.org.

+ Why We Do It

We believe that good advice should be more accessible, more transparent, and just plain easier. Establishing a 529 account for your child’s education should be simple, but if you’re not 100% sure what you need or you’re not comfortable making investment decisions on your own – it can be overwhelming. The 529 Challenge is our way to give back and to use our expertise to help families get started down the right track.

+ The Cost

$0. Seriously

Setup Your 529 Account

A 3-step process to help you start saving for college.

Step #1 – Schedule a 30-Minute Zoom Call

In the interim, we’ll send you a list of all the information you’ll need to setup your account.

Schedule Your Call

Step #2 – Screenshare. You Drive, We’ll Navigate

Step #3 – Start Saving!

Still Have Questions? Keep Reading…

What is a 529 College Savings Account?

A 529 college savings account is a type of investment account that is used for higher education savings.

Why are 529 accounts a great way to save for college?

Tax benefits. Funds in a 529 plan grow tax-deferred and qualified withdrawals are tax-free. New York State residents, contributing to a New York State sponsored plan, can also benefit from a NYS income tax deduction.

How much does NY 529 College Savings Direct Plan cost?

There are no fees or minimum account balances to open a New York 529 College Savings Direct Plan. Once the account is funded, the plan charges an asset-based fee of 0.12% per year. That means, on an annual basis, you’ll pay $1.20 for every $1,000 you have invested in the Direct Plan.

The NY 529 College Savings Direct Plan does not have any annual account fees and it does not pay out any commissions or advisor fees.

Who is the Investment Manager for the NY 529 College Savings Direct Plan?

Vanguard.

Who is the account owner? Who is the beneficiary?

In a simple example of parents wanting to save for their child, one of the parents is the account owner and the child is the beneficiary.

What if the beneficiary does not go to college?

In the event the beneficiary does not go to college, you can 1) stay invested in case they decide to attend school later, 2) change the beneficiary to an eligible family member, or 3) withdraw the funds for other use. If you withdraw the funds for a non-qualified expense, earning will be subject to a 10% penalty tax as well as federal and state income tax.

What if the beneficiary gets a scholarship?

You have a few options. First, you can keep the money in the 529 and use it for future education (grad school). Second, you can change the beneficiary to an eligible family member – a sibling, for example. Third, you can withdraw the funds. The earnings will be subject to income tax, but the 10% penalty will not apply in the case of a scholarship.

Can I open a 529 account if I don’t have kids yet?

Sure. You just need to name yourself as the beneficiary. Once you have a child, you can update the account to name them as the beneficiary.

Step #1 – Schedule Your 30-Minute Call