Investment options

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 14 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), the Utah State Treasurer’s Office, and FDIC-insured accounts held by Sallie Mae Bank and U.S. Bank.

Explore the investment options

Two customized options

  • 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.
Option Description Fee Range
Customized Age-Based You determine your client’s investment allocations for each of 10 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. 0.190% to 0.583%
Customized Static You 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. 0.190% to 0.583%

Four age-based options

  • These options take into consideration the age of your client’s beneficiary and number of years before the beneficiary is expected to attend college.
  • The investment allocation gradually and automatically shifts toward fixed-income funds and FDIC-insured accounts as the beneficiary gets older.
  • Money in the account will be rebalanced annually on the beneficiary’s birthday, or next business day, to bring the selected underlying investments back to the target allocation established when the account was opened.
Option Description Fee Range
Age-Based Aggressive Global Begins with 100 percent allocation to domestic and international equity funds. Fixed-income allocations increase as the beneficiary ages, and a stable value fund and FDIC-insured accounts are added. 0.174% to 0.188%
Age-Based Aggressive Domestic Begins with 100 percent allocation to domestic equity funds. Fixed-income allocations increase as the beneficiary ages, and a stable value fund and FDIC-insured accounts are added. 0.160% to 0.182%
Age-Based Moderate Begins with 80 percent allocation to domestic and international equity funds and 20 percent to fixed-income funds and a stable value fund. Fixed-income allocations increase as the beneficiary ages and FDIC-insured accounts are added. 0.179% to 0.190%
Age-Based Conservative Begins with 60 percent allocation to domestic and international equity funds and 40 percent to fixed-income funds, a stable value fund, and FDIC-insured accounts. Fixed-income, stable value, and FDIC-insured allocations increase as the beneficiary ages. 0.157% to 0.191%

Eight static options

  • 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.
Option Description Fee
Equity—100% Domestic All account money is allocated to a domestic equity fund. 0.180%
Equity—30% International 30 percent of account money is invested in a developed markets index fund that invests mainly in foreign equity funds; 70 percent is invested in a domestic stock market index fund. This option is rebalanced on the beneficiary’s birthday to preserve the original asset allocation targets. 0.189%
Equity—10% International 10 percent of account money is allocated to an international index fund that invests mostly in foreign equity funds; 90 percent is invested in domestic index funds. This option is rebalanced on the beneficiary’s birthday to preserve the original asset allocation targets. 0.189%
70% Equity/30% Fixed Income 70 percent of account money is allocated to domestic and international equity funds; 30 percent to fixed-income funds. This option is rebalanced on the beneficiary’s birthday to preserve the original asset allocation targets. 0.192%
20% Equity/80% Fixed Income 20 percent of account money is allocated to equity funds; 80 percent to fixed-income funds and the FDIC-insured accounts. This option is rebalanced on the beneficiary’s birthday to preserve the original asset allocation targets. 0.196%
Fixed Income All account money is allocated between three fixed-income funds. This option is rebalanced on the beneficiary’s birthday to preserve the original asset allocation targets. 0.150%
Public Treasurers’ Investment Fund All account money is allocated to the Utah Public Treasurers’ Investment Fund. 0.000% (Utah resident)
0.160% (non-Utah resident)
FDIC-Insured All account money is allocated to the FDIC-insured accounts held in trust by my529 at Sallie Mae Bank and U.S. Bank. 0.160%

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 | advisorinfo@my529.org