CollegeBacker

Robo Advisor

CollegeBacker is the best way to save for college. Invest tax-free. Collect gifts from family and friends. Earn cashback.

Investment risk

Low

Min investment

$5

Target return

Varied

Fees

$1

Overview

CollegeBacker was founded to make saving for college so easy that every American child will have a college fund, no matter their family’s means, where they come from, or what they look like. CollegeBacker is an internet-based adviser and their focus is on encouraging you to start saving for college quickly and with the help of family and friends, rather than on chasing specific kinds of investment returns. As an investment adviser focused on helping families save for college, CollegeBacker advises on investing in 529 plans, which are tax-advantaged investment vehicles designed to encourage saving for future education expenses. They can help you select a 529 plan and open an account for you in just a few minutes, all online through their website or mobile apps. They will also help you choose an age-based portfolio that automatically adjusts based on the beneficiary's age to become less aggressive and less risky as the beneficiary reaches college enrollment age.

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Why Invest

  • Best way to save for college and invest tax-free
  • Start a college fund for your child or enhance your existing one in under 5 minutes.
  • Invite family and friends to support your college fund with gifts & cashback rewards.

How you make money

After your account is activated, once your contribution settles, the money from your contribution is invested according to the investment option you've selected. For the plan options CollegeBacker recommend, your money is invested across mutual funds. CollegeBacker helps you choose an age-based portfolio that automatically adjusts based on the beneficiary's age to become less aggressive and less risky as the beneficiary reaches college enrollment age. Through their platform, you'll be able to access account information, automate contributions, set up a gifting page to receive contributions, track your progress, and share goals. You'll also be provided with new ways to save more, such as their cashback rewards program Backer Bucks. CollegeBacker is an internet-based adviser and their services are provided exclusively through their interactive website and mobile apps. CollegeBackers focus is on encouraging you to start saving for college quickly and with the help of family and friends, rather than on chasing specific kinds of investment returns.

How CollegeBacker makes money

They think it's important for every family to have a college savings plan, so they let you decide what fee to pay. Most families choose to pay $5 per month, but you can choose anywhere from $1 to $10 a month. They charge a monthly fee, instead of an asset-based fee, so that you are not paying more as you save more. The fee also covers the entire family so that you are not paying more if you have multiple funds for multiple children. Unlike brokers, they do not charge any commissions or initial sales charges. They also do not have any hidden fees or charge extra for their gifting platform or cashback rewards program. They simply ask that you to pay a monthly fee in the amount that you believe is fair, with $1 per month as the minimum, and you can change your fee at any time online. Underlying 529 plan expenses range from 0.16% - 0.18% per year.

Is it Safe?

If you choose to start saving with a Backer Safe, your money will be held at one of the largest U.S. banks for your benefit, and will be FDIC-insured up to $250,000. They'll invest your savings in a 529 plan once you're ready. If you choose to invest your savings in a 529 plan, your investment will be placed in a state-sponsored account managed by a national investment company. Your investment will be tax-free as long as you end up using it for qualified education expenses. Most 529 plan investments are not insured by the FDIC, and the portfolio selection we recommend will not be FDIC-insured. However, we can change your portfolio selection if you prefer to be invested in FDIC-insured funds.

 

CollegeBacker does not provide investment advice on investments that are guaranteed by a bank or otherwise, or that are FDIC-insured. Investing involves risk and investments may lose value. Please consider your objectives, tax considerations, and CollegeBacker pricing before investing. Past performance does not guarantee future results. Investment outcomes and projections are hypothetical in nature. CollegeBacker does not provide brokerage services.

Things to know

  • You make money onDividends + Value
  • Fees$1
  • Payout frequencyQuarterly
  • Term of investment60+ months
  • LiquidityModerate
  • Open toAll Investors

Company

  • Country availabilityUS only
  • Assets under management$30M
  • Established2015
  • Mobile ApplicationIOS, Android

Investment Return Calculator

Calculate your estimated return to reach your investment goals.

$

%

years

$

Monthly

Amount invested

$7,000

Total fees

$60

Value after fees

$9,002.05

Any references to past performance, regarding financial markets or otherwise, do not indicate or guarantee future results.

Forward-looking statements, including without limitations investment outcomes and projections, are hypothetical and educational in nature. The results of any hypothetical projections can and may differ from actual investment results had the strategies been deployed in actual securities accounts.

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Investment risk

Low

Min investment

$5

Target return

Varied

Fees

$1