Work with your investment professional to familiarize yourself with our three categories of investment portfolios and select the one that’s right for you: age-based, target, or individual fund portfolios. And don’t worry if you change your mind. The IRS allows an account owner to change the investment portfolio twice per calendar year or upon a change of beneficiary.
Overview: The professionally designed age-based portfolios focus your investment strategy on the current age of the beneficiary. The objective is to create growth potential in the early years and reduce fluctuations in the account as college approaches. You choose the option (aggressive, moderate, or conservative) that matches your investing style.
Investor Profile: College savers who are looking for an investment portfolio that automatically adjusts over time as the beneficiary gets closer to college age.
Overview: These six diversified investment portfolios, ranging from aggressive to conservative, provide a set asset allocation of equity (stock), fixed income (bond), and money market investments. The portfolio you select will be rebalanced on an ongoing basis to maintain the targeted asset allocation regardless of the age of the beneficiary.
Investor Profile: College savers who want a mix of stocks, bonds, real estate, and/or money market investments that keeps the same asset allocation over time.
Overview: The 24 individual fund portfolios representing multiple asset classes can be more volatile than the broadly diversified age-based portfolios or the target portfolios, but they allow you the freedom to tailor your choices to meet specific education investment goals. You select a combination of individual funds that range from lower risk/lower return to higher risk/higher return investment options.
Investor Profile: College savers looking to customize their investment strategy utilizing various investment classes.