Savvy Financial operates as a digital investment advisor that helps individuals and employers plan and save for college expenses using 529 education savings plans. The company utilizes automated algorithms to forecast college costs and manage investment portfolios through age-based enrollment date options. In addition to individual accounts, Savvy Financial collaborates with employers to provide workplace education benefits, such as student loan repayment programs, tuition reimbursement, and student loan coaching. The platform operates primarily online without traditional in-person human advisory meetings. Savvy Financial selects a standard 529 plan provider and default investment options to simplify the planning process for clients. The firm does not manage traditional investment portfolios or provide comprehensive financial planning beyond education savings and related debt strategies.
Fee Structure
Savvy Financial charges a flat monthly fee of up to $6 per account for individual 529 plan management. For employer-sponsored accounts, fees are determined by a separate contract with the employer and are typically paid directly by the employer or through payroll arrangements.
In addition to the advisory fee charged by Savvy Financial, clients pay underlying administrative and investment management expenses to the 529 plan custodian and record keeper, which range from 0.14% to 0.16% of the portfolio value annually.