Path2College 529 Plan

Managed Investment Portfolios

These are the simple, all-in-one investment portfolios that base their investment mix on the projected year you will need the money to pay for qualified education expenses. Choose among the Managed Enrollment Year Investment Portfolios and Aggressive Managed Enrollment Year Investment Portfolios.

The Managed Investment Portfolios are a set of individual investment portfolios that align with the date your future student needs funds to pay for their education (i.e., their enrollment year in school). The asset allocation or mix of equities, bonds, and cash adjusts automatically as the enrollment year approaches. A Managed Investment Portfolio can be a good all-in-one solution to achieve investment diversity with no extra work once you select your portfolio. The Plan offers two types of Managed Investment Portfolios: i) the Managed Enrollment Year Investment Portfolios, and ii) the Aggressive Managed Enrollment Year Investment Portfolios. For the equivalent enrollment year, an Aggressive Managed Enrollment Year Investment Portfolio will allocate a higher percentage of its assets to mutual funds that mainly invest in equity securities than a Managed Enrollment Year Investment Portfolio.


How the Managed Investment Portfolios Work


Select Your Enrollment Year

Your first step is to determine your future student’s expected enrollment year in school. Typically, families assume their student will need their education savings at age 18. Once you’ve estimated when you expect your student will need to use their savings, select the enrollment year portfolio that represents the date closest to your estimated date of enrollment. For example, if your future student was born in 2015 and you anticipate they will begin college at 18 years old, they may need their college savings in the year 2033 (2015 plus 18). This means you would select either the 2032/2033 Enrollment Portfolio or 2032/2033 Aggressive Enrollment Portfolio.

Managed Enrollment Year Investment Portfolios



Aggressive Managed Enrollment Year Investment Portfolios




Consider Your Education Savings Goals

Families can also take advantage of the versatility of the Managed Investment Portfolios to save for all types of qualified education, including college/university, technical college, professional and graduate schools, and K-12 tuition*. Simply adjust the expected year of enrollment in your calculation to select your Managed Enrollment Year Investment Portfolio or Aggressive Managed Enrollment Year Investment Portfolio.

*The tax reform legislation changes allowing withdrawals for K-12 expenses were on a federal level. Tax consequences of using 529 plans for elementary or secondary education tuition expenses will vary depending on state law, and may include recapture of tax deductions received from the original state as well as penalties. Consult with a tax or legal advisor in this regard.




Align with Your Risk Tolerance

What level of risk are you comfortable with? You can find out by taking our Risk Tolerance Quiz. If you are a conservative investor, you may wish to choose an earlier Managed Investment Portfolio regardless of the year your future student begins college or technical college. More aggressive investors can select a later date. Investors aligning with their risk tolerance or seeking particular investment objectives can view asset allocation across enrollment year dates below to help guide their decision.



Asset Allocation by Managed Investment Portfolio

Select the “Managed Enrollment” tab if you are considering a Managed Enrollment Year Investment Portfolio, or the “Aggressive Managed Enrollment” tab if you are considering an Aggressive Managed Enrollment Year Investment Portfolio. Next, slide along the bar to the Enrollment Year that corresponds to the expected date you plan to use your funds to pay for your child’s education. Then click Submit to view the investment mix.

Enrollment
Portfolio:



Ready to get started?
Open your Path2College 529 account today.

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