my529 introduces Enrollment Date options, NAV and ticker symbols
my529 made plan enhancements on July 14. Below is a quick rundown of the updates that may affect your clients’ investments, as well as advisor-specific information.
Enrollment Date investment options
On July 14, 2021, my529 transitioned the four predetermined Age-Based investment options to Enrollment Date investment options. The Age-Based options were moved to Enrollment Date options with a similar percentage of equity holdings. Like target date investment options in a 401(k), Enrollment Date options focus on the beneficiary’s expected date of attending an educational institution. The new options offer more flexibility and can be used for higher education or K-12 tuition expenses. You can also select an option based on your clients’ risk tolerance. In this case, your client can choose an Enrollment Date option that has no relation to when their beneficiary may go to school and instead is tied to whether the option is more conservative or aggressive.
Keep in mind, no Customized Age-Based options transitioned to Enrollment Date options.
Daily Net Asset Value and ticker symbols
my529 now publishes a daily Net Asset Value (NAV) for the Enrollment Date and Static investment options. Within the Customized options, each single-fund portfolio also features a daily NAV. Each Enrollment Date option, Static investment option and Customized single-fund portfolio now displays a ticker symbol registered with the Nasdaq Fund Network that allows advisors and clients to track the symbol using their preferred financial platform. (Though a Customized option may be made up of several single fund portfolios, withdrawals from the option are taken proportionally from each of the single fund portfolios that make up the account. Account owners cannot select which single fund portfolio to take a withdrawal from.)
How do these updates affect the customizable space?
Though the names and ticker symbols of the single-fund portfolios may have changed, the underlying fund family of investments in the customizable space remains the same. The information button in the Customized template builder will identify whether the fund is Vanguard or Dimensional. Next to the fund name, hover over the information icon to view the ticker symbol. If it shows a “UTV,” the “V” is for Vanguard.
If you see “UTD,” the “D” is for Dimensional.
Learn more about Enrollment Date options:
- Webinar explaining our recent changes.
- my529 brochure.
- Enrollment Date page on advisor.my529.org.
- my529 investment option allocations table.
If you have questions, reach out to the my529 Professional Services Team at 888.529.1886, or by emailing firstname.lastname@example.org.