NextGen 529® Offers Significant Benefits to Maine People and is a Leading Plan in the Nation 

AUGUSTA—May is 529 month, which is a great time to remind Maine people of NextGen 529’s many robust benefits. 

The Finance Authority of Maine (FAME) administers NextGen 529, providing an opportunity for investors, including Maine residents, to save for eligible education expenses while realizing potential tax advantages. It is one of the largest 529 plans in the nation and was recently recognized as one of the best in the nation on Money.com.

With 529 plans like NextGen 529, earnings have the opportunity to grow and withdrawals are federal and Maine state income tax-free when used for qualified education expenses. And, new for 2023, a benefit for Maine taxpayers, contributions to any 529 plan, up to $1,000 per student (designated beneficiary) may be eligible for a Maine state income tax deduction.

Accounts can be set up for any child or grandchild, friend or relative regardless of income, residency, or the age of the beneficiary. 529 plans can be used to pay for all kinds of education—four-year college, two-year associate degree programs, trade schools, apprenticeship programs, even qualified online courses—at home or abroad. In addition, 529 plans can be used to pay for up to $10,000 per year in K-12 tuition at eligible elementary or secondary schools. 

NextGen 529’s generous matching grants program can boost Mainers’ education savings. FAME provides a $100 Initial Matching Grant to eligible Maine NextGen 529 accounts upon opening. There is also a one-time $100 grant to eligible Maine NextGen 529 accounts with qualifying automatic contributions made directly from a bank account or via payroll deduction. And the Next Step Matching Grant is a 30%, up to $300 matching grant that can be earned each year. FAME has invested over $53 million in grant funds to Maine accounts. 

FAME also administers the $500 Alfond Grant. Thanks to the generosity of the late Maine philanthropist, Harold Alfond, the Alfond Scholarship Foundation gives all children born Maine residents since January 1, 2013 a jump-start on saving for college. The Alfond Grant is a $500 grant for eligible Maine resident babies to be used for future higher education expenses. The Alfond Scholarship Foundation has invested nearly $70 million in grant funds for more than 145,000 Maine children and more than 51,000 of those kids have a NextGen 529 account. 

Higher education can lead to a better job and better pay. Parents, relatives, and even friends can give a child more options when it is time for higher education by planning for future education expenses. To explore investment options and learn more about the details of 529 plans, visit FAME’s College Savings Guide at NextGenforME.com/college-savings-guide/.

“Having two kids at once was a pretty big surprise,” said Cory Schnaible, South Portland resident. “But opening a NextGen 529 account gave us a solid foundation for their education. It also, 9 years down the line, has given the girls a sense of responsibility and a passion for learning. Watching them think about their futures and set goals for themselves has been truly awesome. The peace of mind that comes with knowing money is being invested into whatever kind of education they want to chase after high school is pretty great, too.”

FAME CEO Carlos Mello invests in NextGen 529 for his grandchildren and said, “Please consider opening and contributing to a NextGen 529 account and help make your student’s higher education dream a reality.”

About FAME:

The Finance Authority of Maine (FAME) is a quasi-independent state agency celebrating its 40^th Anniversary in 2023. We provide innovative financial solutions to help Maine citizens pursue business and educational opportunities. FAME helps to lead the creation of good paying jobs for Maine citizens by working at the nexus between economic and workforce development. To learn more about FAME, please visit www.famemaine.com.

About Grants for Maine Residents: 

Grants for Maine residents are linked to eligible Maine accounts. Upon withdrawal, grants are paid only to institutions of higher education. Grants may lose value. See Terms and Conditions of Maine Grant Programs for details about eligibility and other conditions and restrictions that apply at NextGenforME.com/grants-for-maine-residents/.

About the Alfond Grant: 

Prior to 2013, the $500 Alfond Grant was available on a more limited basis from 2008-2012. The Alfond Grant is not automatic in all circumstances and is also available in limited other circumstances. The Alfond Grant may be linked to an eligible NextGen 529 account. Upon withdrawal, the grant is paid only to institutions of higher education. The use of the Alfond Grant is also subject to certain restrictions–see Alfond Grant Guidelines available at NextGenForMe.com/alfond-grant-eligibility-guidelines/.

About NextGen 529:

NextGen 529 is a Section 529 plan administered by the Finance Authority of Maine (FAME). FAME helps Maine students and families meet the costs associated with higher education through loan, grant, and scholarship programs. FAME also oversees an extensive outreach and counseling program that is designed to encourage young people to aspire to and pursue higher education.

You may obtain the NextGen 529 Program Description by requesting a copy from your financial professional, visiting NextGenforME.com or calling the program manager at 1-833-336-4529. The Program Description should be read carefully before investing.

The Program Description contains more complete information, including investment objectives, charges, expenses and risks of investing in NextGen 529, which you should carefully consider before investing. If you are not a Maine resident, you also should consider whether your or your designated beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s 529 plan.

NextGen 529 accounts are not bank deposits and are not insured by the Federal Deposit Insurance Corporation (FDIC). Returns on investments in NextGen 529 accounts are not guaranteed or insured by the State of Maine, FAME or any NextGen 529 service providers. NextGen 529 participants assume all investment risk of an investment in NextGen 529, including the potential loss of principal and liability for tax penalties that are assessable in connection with certain types of withdrawals of amounts invested in NextGen 529.

Vestwell is the program manager; The Bank of New York Mellon is the program custodian; BlackRock Advisors, LLC is the program investment manager; and BlackRock Investments, LLC, Member FINRA, is the program distributor and underwriter. Merrill Lynch, Pierce, Fenner & Smith Incorporated (Merrill), a registered broker-dealer, registered investment adviser, Member SIPC, is the NextGen 529 Direct Series recordkeeping agent.

One in Three Mainers Believe They Have Too Much Debt

Augusta – According to the 2021 National Financial Capability Study conducted by the FINRA Investor Education Foundation®, thirty percent of people in the United States are feeling financially fragile and one-third of Mainers believe they have too much debt. To help, the Finance Authority of Maine (FAME) has expanded its financial wellness efforts and outreach, including free online financial education resources and in-person events. These tools are designed to help individuals make better financial decisions, so they are more secure throughout their lives. Additionally, these resources can be used by Maine businesses and educators to teach and nurture students to understand and use good financial skills.

FAME has long been known as the trusted agency to help Maine businesses grow and for supporting Maine people in affording higher education. With more people than ever seeking financial stability since the onset of the pandemic, FAME continues to provide resources in support of Financial Literacy Month.

“If the pandemic era has taught us anything, it’s that we should be prepared financially,” says Mary Dyer, FAME’s Financial Education Programs Manager. “We have the resources to not only help people better afford higher education, but tools to help them build budgets, create a rainy-day fund, learn about careers, and so much more. Financial wellness plays a huge part in our overall health and well-being.”

Financial wellness refers to a person’s overall financial well-being and ability to meet both current and future financial obligations in order to achieve financial security and freedom of choice. Financial wellness is an important part of our health and well-being.

Three prominent features of FAME’s financial wellness offerings include:

Steps to Financial Wellness: For those who are ready to start on a path toward financial wellness but might be unsure where to begin.

Online Financial Wellness: for all Mainers, including a financial wellness check-up to assess your finances and recommend tools, content, and courses, including a money personality tool to help you understand what drives your financial decision-making.

Outreach Events: FAME is hosting Financial Wellness Industry Night at Après in Portland on April 10th from 4:30 – 7:30 p.m., as well as many Financial Aid Information Sessions and free events. FAME is also sponsoring, speaking and exhibiting at the upcoming Fostering Financial Education in Maine Schools Conference on April 27-28.

In addition, FAME provides:

• Financial Literacy Social Media Toolkit can be used by anyone interested in launching a social media campaign or including financial wellness topics in their social media platform.
• Financial Check-Ins with FAME webinar series to reach Maine people with the financial topics they care about through live interactive webinars on the first Friday of the month. The webinars are also recorded and available to all.
• Claim Your Future^®, an interactive game designed to encourage students to explore the return on investment of various career options and financial decisions. All Maine schools and non-profit organizations that work with youth can play Claim Your Future online or request a free game kit.
• Invest in ME Reads, a family financial education program.
• On-demand custom financial education programs for groups by FAME outreach staff.

“As State Treasurer and a FAME Board member, I want to encourage Maine families and students to focus on their financial wellness. Taking advantage of these free resources provided by FAME and others can help youth and adults develop lifelong financial wellness. This is especially helpful when it comes to saving and paying for higher education, and planning future careers and household budgets,” stated Maine State Treasurer Henry E.M. Beck.

About FAME:
The Finance Authority of Maine (FAME) is a quasi-independent state agency that provides innovative financial solutions to help Maine citizens pursue business and educational opportunities. FAME helps to lead the creation of good paying jobs for Maine citizens by working at the nexus between economic and workforce development. To learn more about FAME, please visit www.FAMEmaine.com

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AUGUSTA — At its monthly meeting on November 17, 2022, the board of directors of the Finance Authority of Maine (FAME) approved a $1.2 million term loan for KV Tooling Systems, LLC, a precision tool manufacturer located in Augusta. The funds are comprised of a $600,000 FAME Direct Loan and $600,000 from the Grow Maine Program, which FAME administers utilizing federal SSBCI funds.

The approved funds will help the company to meet increased demand and purchase a new computer numerical control (CNC) machine, prep and finish equipment, build an addition to the property, and provide ongoing working capital. The action is expected to help to create three new jobs and retain an additional six jobs.

KV Tooling Systems was founded in 2002 and initially operated out of its founder’s basement. The business has since relocated and expanded over the years and needs more space for its operations. The company provides tool re-sharpening and grinding services, custom-cutting tool design, as well as engineering and manufacturing services. The company also has in-house computerized design CAD capabilities.

“We are very appreciative of FAME’s support as we continue to expand our operations,” stated Brian Beland, president and owner of KV Tooling Systems. “We look forward to meeting customer demand in our growing business.”

Grow Maine, administered by FAME in conjunction with various statewide lending partners, provides State Small Business Credit Initiative (SSBCI) funding to eligible Maine businesses. SSBCI is a federal program administered by the U.S. Department of the Treasury that was created to strengthen state programs that support private financing to small businesses. FAME is partnering with over thirty intermediary lenders across the state for the Grow Maine program. The lenders are community-based, Community Develop Financial Institutions (CDFIs), and local and municipal economic development lenders that are already partners with FAME’s direct lending programs. Funding is available through FAME and its intermediary partners via loan guaranties, direct loans, and equity capital. To learn more about the program, please visit: www.FAMEmaine.com/Grow

“FAME is pleased to help support the continued growth of KV Tooling Systems,” stated Richard Trafton, FAME Board chair. “Supporting precision manufacturing is part of Maine’s economic development plan and a high priority for FAME.”

The Finance Authority of Maine (FAME) is a quasi-independent state agency that provides innovative financial solutions to help Maine citizens pursue business and educational opportunities. FAME helps to lead the creation of good paying jobs for Maine citizens by working at the nexus between economic and workforce development. To learn more about FAME, please visit www.famemaine.com

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At their annual meeting held on Thursday, November 17, 2022, at Portland’s Holiday Inn By The Bay, members of the Finance Authority of Maine (FAME) Board of Directors elected new officers for 2022-2023.

This year’s officers, whose terms will run from November 2022 through November 2023, are:  

• Chair: Hon. Richard L. Trafton, Esq. A resident of Brunswick, Dick is a partner with the law firm of Trafton, Matzen, Belleau & Frenette in Auburn, where he lived from childhood. He was educated at Phillips Academy, Dartmouth College, and the University of Maine School of Law. Dick served in the Maine Senate from 1982 through 1986, chairing the Joint Standing Committees on Judiciary and Legal Affairs. He also served as Mayor of the City of Auburn from 1989 through 1994. Dick served as President of the Auburn Public Library Board of Trustees for six years and on two Charter Commissions for the City of Auburn, re-writing its Charter. Married with three adult children, Dick is an outdoor enthusiast and has served as Chairman of the Outdoor Sports Institute’s Board of Trustees. Dick previously served as Vice Chair of the FAME Board.
• Vice Chair: Dustin Brooks. Dustin is the Vice President of Market Strategy at Unum Group, where he leads market research and growth initiatives. He holds an MBA from Stanford University and, prior to multiple roles at Unum, worked in marketing and public relations at the law firm Preti Flaherty. Originally from Island Falls in Aroostook County, he now resides in Portland with his wife Jessica, a small business owner and Oxford County native, and their two daughters. He earned his undergraduate degree at Bowdoin College and is a George J. Mitchell Scholar Alumnus. Dustin most recently served as Treasurer of the FAME Board.
• Treasurer: Rebecca Asen, Esq. Becca is Director of Attorney Recruiting & Professional Development at Bernstein Shur. After growing up in Casco, she graduated with honors from Barnard College and Georgetown University Law School. Becca previously worked at IDEXX Laboratories, Inc. as Associate General Counsel and in the capital markets group at Sidley Austin LLP, where she represented a broad array of clients that ranged from the large financial institutions to regional real estate companies in registered deals and private placements. Becca also serves on the Board of Directors at Preble Street. She lives in Falmouth with her husband, Taylor, and their two daughters and son. Becca also serves as chair of FAME’s Risk Management and Audit Committee.

“FAME serves an important role in Maine’s economic development and higher education landscapes, and I look forward to leading the board as we continue to develop and administer important programs to keep Maine’s economy and workforce moving forward,” stated Board Chair Richard L. Trafton, Esq. “I want to thank outgoing chair Dave Daigler for his many contributions over the past two years and for his steadfast devotion to the board and agency as a whole.”

Maine Community College System President Daigler, who served as board chair for the past two years, will remain on the board and continue as a member of FAME’s Executive Committee in his capacity as Immediate Past Chair.

FAME is a quasi-independent state agency that provides financial solutions that help Maine people achieve their business and higher education goals. FAME helps to create a Maine workforce that with good-paying jobs by focusing on the nexus of economic and educational development. FAME recently was recognized for the eighth year in a row as one of the Best Places to Work in Maine. To learn more about FAME, please visit www.famemaine.com.