Path2College 529 Plan

Guaranteed Investment Portfolio

If you have a short investment time horizon or your objective is capital preservation, the Guaranteed Portfolio may be right for you.

Maybe you’ve been saving for a while and your account has been steadily growing - but the college years are just around the corner. You’re happy with what you’ve got and you don’t want any surprises. It’s no longer about getting big returns, it’s about making sure what you’ve got is safe. Perhaps you just want to make sure the contributions to your account are protected.

Either way, you might want to consider the Guaranteed Portfolio, which is a good way to safeguard your money with relatively little risk.

Changing Your Investments

Once you invest in a particular investment portfolio, you can transfer contributions and any earnings to another investment portfolio up to twice per calendar year or upon a transfer of funds to a Path2College 529 Plan account for a different beneficiary.

Periodically Review Your Investments

It’s a good idea to periodically re-evaluate your investment strategy as your goals, investment time horizon, and personal situation change — for example, annually at tax time, on a yearly basis if your income changes, or upon the birth of another child.


How the Guaranteed Investment Portfolio Works

This investment seeks to preserve capital and provide a stable return. You may want to consider it if you have a short investment time horizon and are looking for a conservative investment with a relatively low level of risk.

Guaranteed Portfolio
(Risk Level – Conservative)
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GUARANTEED PORTFOLIO

Investment Objective. This Investment Portfolio seeks to preserve capital and provide a stable return.

Investment Strategy. The assets in this Investment Portfolio are allocated to a funding agreement issued by TIAA-CREF Life, which is an affiliate of TFI, to the Board as the policyholder on behalf of the Plan. The funding agreement provides a minimum guaranteed rate of return on the amounts allocated to it by the Investment Portfolio. The minimum effective annual interest rate will be neither less than 1% nor greater than 3% at any time. The guarantee is made by the insurance company to the policyholder, not to Account Owners. In addition to the guaranteed rate of interest to the policyholder, the funding agreement allows for the possibility that additional interest may be credited as declared periodically by TIAA-CREF Life. The rate of any additional interest is declared in advance for a period of up to 12 months and is not guaranteed for any future periods.

Accumulations (including contributions and earnings) under the Funding Agreement for the Guaranteed Portfolio will be credited to the Path2College 529 Plan with an effective annual interest rate of 1.20%, and are guaranteed to earn this rate through December 31, 2021, subject to the claims-paying ability of TIAA-CREF Life.

100.00%Funding Agreement
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Guaranteed Investment Portfolio

(Risk Level – Conservative)

Guaranteed Investment Portfolio
INVESTMENT PORTFOLIO NAME ALLOCATION INVESTMENT PORTFOLIO OBJECTIVE
GUARANTEED
PORTFOLIO
Investment Objective. This Investment Portfolio seeks to preserve capital and provide a stable return.

Investment Strategy. The assets in this Investment Portfolio are allocated to a funding agreement issued by TIAA-CREF Life, which is an affiliate of TFI, to the Board as the policyholder on behalf of the Plan. The funding agreement provides a minimum guaranteed rate of return on the amounts allocated to it by the Investment Portfolio. The minimum effective annual interest rate will be neither less than 1% nor greater than 3% at any time. The guarantee is made by the insurance company to the policyholder, not to Account Owners. In addition to the guaranteed rate of interest to the policyholder, the funding agreement allows for the possibility that additional interest may be credited as declared periodically by TIAA-CREF Life. The rate of any additional interest is declared in advance for a period of up to 12 months and is not guaranteed for any future periods.

Accumulations (including contributions and earnings) under the Funding Agreement for the Guaranteed Portfolio will be credited to the Path2College 529 Plan with an effective annual interest rate of 1.20%, and are guaranteed to earn this rate through December 31, 2021, subject to the claims-paying ability of TIAA-CREF Life.

100.00%Funding Agreement
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