As part of our commitment to help families save for the costs of education, my529 works closely with financial advisors to help their clients achieve college savings goals. That’s why my529 offers 24 investment options designed with financial advisors in mind.
Investment options include underlying funds offered by The Vanguard Group and Dimensional Fund Advisors, Pacific Investment Management Company (PIMCO) and FDIC-insured accounts held by Sallie Mae Bank and U.S. Bank.
Explore the investment options
- Go toÂ the my529 Investment Option Asset Allocations Table.
- You can create a unique investment allocation for your client from the underlying investments that my529 offers.
- The customized allocation can be age-based or static.
- Choose from a selection of Vanguard and Dimensional mutual funds, a PIMCO stable value fund, as well as FDIC-insured accounts. View details of the underlying funds.
|Customized Age-Based||YouÂ determine your client’s investment allocations for each of 10Â preset age brackets; money is automatically reallocated to a new investment allocation when the beneficiary ages to the next bracket. This option is rebalanced on the beneficiary’s birthday to preserve the original asset allocation targets.||0.150% to 0.503%|
|Customized Static||YouÂ determine your client’s investment allocation. The allocation is fixed unless the owner requests a change. This option is rebalanced on the beneficiary’s birthday to preserve the original asset allocation targets.||0.150% to 0.503%|
- Enrollment Date options take into consideration the target year the account beneficiary will begin taking withdrawals to pay for qualified education expenses.
- These options are built from a mix of Vanguard mutual funds, the PIMCO Interest Income Fund and FDIC-insured accounts. Over time, the options gradually shift to a more conservative investment allocation as the target enrollment year draws closer, eventually ending up in the Enrolled option.
- Investment allocations automatically adjust over time based on a preset quarterly allocation schedule. Daily cash flows keep the options close to target allocations.
- The Internal Revenue Service allows you to make two option changes in a calendar year without triggering tax consequences.
|Enrollment Date options||The Enrollment Date options gradually shift to a more conservative investment allocation as the target enrollment year draws closer, eventually ending up in the Enrolled option.||0.151% to 0.165%|
- Unlike age-based options, static investment options do not change their allocations as your client’s beneficiary ages.
- On your advice, your client may wish to change his or her account to a more conservative investment option as the beneficiary ages.
|Total US Stock Market||This option aims to match the investment return of the overall U.S. stock market by investing in large, mid-, and small-cap stocks across growth and value styles.||0.130%|
|Global Equity 90/10 US & International||This option aims to follow the investment performance of the U.S. stock market while having some international exposure across developed and emerging equity markets.||0.136%|
|Global Equity 70/30 US & International||This option aims to follow the investment performance of the U.S. stock market while having international exposure across developed and emerging equity markets.||0.148%|
|80/20 Aggressive||This option aims for growth through a higher allocation to stocks and is intended for investors with a higher tolerance for risk. Higher levels of stock investment can result in increased account balance volatility.||0.154%|
|60/40 Balanced||This option aims for growth through a higher allocation to stocks while keeping 40 percent invested in fixed income and principal preservation funds in order to help decrease the impact that stock market volatility can have on account balances.||0.155%|
|40/60 Moderate||This option aims to provide income through a higher allocation to bonds and capital preservation funds while also seeking some growth from stock investments.||0.157%|
|20/80 Conservative||This option aims to provide income through a higher allocation to bonds and capital preservation funds while also allowing for some limited growth from stock investments.||0.158%|
|Fixed Income||This option aims to provide investment income.||0.139%|
|FDIC-Insured||This option aims to provide interest income while preserving capital. All account money is allocated to the FDIC-insured accounts held in trust by my529 at Sallie Mae Bank and U.S. Bank.||0.120%|
|Stable Value||This option aims to provide a stable return while preserving capital.||0.232%|
IRS investment option change rule for 529 plans
Your client can make two investment option changes to his or her my529 accounts in a calendar year.
The my529 Professional Services Team stands ready to help you.
Phone: 888.529.1886 | Fax: 888.529.9197 | firstname.lastname@example.org