Home > Library > Stable Times > Volume 7, Issue 2  

529 Plans and Stable Value

Money Magazine recently reported that 529 college savings plans had grown to $19.2 billion during 2002. That's a 209 percent increase during a bear market! And yes, Stable Value is a part of this important new savings market according to a joint SVIA and Travelers Life & Annuity Survey, which covered 529 assets as of March 31, 2003.

In fact, the SVIA/Travelers' Survey found that:

• 24 states now offer a Stable Value Fund as part of their 529 college savings plans. States with a Stable Value Fund account for 60 percent of all college savings plan assets or $11.7 billion.
• Stable Value Funds gathered 6 percent of all 529 college saving plan assets or $1.254 billion.
• Another 14 state plans have a Stable Value provider but do not yet offer a Stable Value Fund.

The survey found that Stable Value is becoming a significant option for 529 plans. The longer the plan and the Stable Value option were in existence, the more money is contributed to both the plan and option.

529 Plans with SV Funds or Managers (PDF, 170KB) 529 State Plan Assets (PDF, 171KB)

Access all past issues of Stable Times in Our Library.