Reading the local paper last week I came across a small article that may have significant ramifications on participants in Wisconsin's 529 Plan, called EdVest. Apparently the current administrator, Wells Fargo, no longer wants to service the account. That means the State will be seeing a new company to run the 260,000 accounts, totaling $2.6 billion.
Why is a change of administrator important? The fee that is charged can be quite steep. My husband and I selected the Vanguard Index funds that are offered under the current investment options. The fees were quite low, which means more of our money will go towards our children's education, and less into the profits of the firm administering the program.
According to the article, Wells Fargo's current contract ends October 31, 2012. I'll be watching and monitoring what this might mean for fund selection and possible fee increases.