Path2College 529 Plan

Guaranteed Investment Option

If you have a short investment horizon or you’re looking to preserve your funds, the Guaranteed Investment Option 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 Investment Option, which is a good way to safeguard your money with next to no 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 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 Option Works

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

Guaranteed Investment Option
(Risk Level – Conservative)
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GUARANTEED OPTION

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

Investment Strategy. The assets in this Investment Option 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 Option. 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. The current effective annual interest rate applicable to the funding agreement will be posted on the Plan’s website.

This option seeks to preserve capital and provide a stable return. It may be appropriate for you if you have a short investment horizon and are looking for a conservative investment with a low level of risk. The contributions invested in this Investment Option are allocated to a Funding Agreement issued by TIAA-CREF Life to the Board, which is the policyholder under the agreement. The Funding Agreement provides for a return of principal plus a guaranteed rate of interest and allows for the possibility that additional interest may be credited as declared periodically by TIAA-CREF Life. The interest rate guarantee is made to the Board only. 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. The term of the Funding Agreement is intended to coincide with the term of the Management Agreement.

Effective January 1, 2017, contributions received, and accumulations arising from such contributions, under the Funding Agreement for the Guaranteed Option as of December 31, 2016 will be credited to the Path2College 529 Plan with an effective annual interest rate of 1.65% and are guaranteed to earn this rate through December 31, 2017, subject to the claims-paying ability of TIAA-CREF Life.

Transfers from the Guaranteed Option to the Money Market Option will not be permitted. (If this restriction changes, investors will be notified prior to the effective date of any such change.)

100.00%Funding Agreement
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Guaranteed Investment Option

(Risk Level – Conservative)

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

Investment Strategy. The assets in this Investment Option 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 Option. 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. The current effective annual interest rate applicable to the funding agreement will be posted on the Plan’s website.

This option seeks to preserve capital and provide a stable return. It may be appropriate for you if you have a short investment horizon and are looking for a conservative investment with a low level of risk. The contributions invested in this Investment Option are allocated to a Funding Agreement issued by TIAA-CREF Life to the Board, which is the policyholder under the agreement. The Funding Agreement provides for a return of principal plus a guaranteed rate of interest and allows for the possibility that additional interest may be credited as declared periodically by TIAA-CREF Life. The interest rate guarantee is made to the Board only. 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. The term of the Funding Agreement is intended to coincide with the term of the Management Agreement.

Effective January 1, 2017, contributions received, and accumulations arising from such contributions, under the Funding Agreement for the Guaranteed Option as of December 31, 2016 will be credited to the Path2College 529 Plan with an effective annual interest rate of 1.65% and are guaranteed to earn this rate through December 31, 2017, subject to the claims-paying ability of TIAA-CREF Life.

Transfers from the Guaranteed Option to the Money Market Option will not be permitted. (If this restriction changes, investors will be notified prior to the effective date of any such change.)

100.00%Funding Agreement
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