College SAVE's age-based options are ready-made portfolios that adjust based upon a child's age.
That means, when the child is younger, the portfolio may include aggressive investments with a higher potential for growth as well as risk. As the child approaches college age, the portfolio adjusts to include more conservative investments designed to preserve your savings.
Clients can also choose one of three age-based portfolios to match their investment style and risk tolerance:
The more conservative the portfolio, the higher its concentration of bonds and short-term investments. Regardless of the option your clients choose, Vanguard will automatically adjust the portfolio to include less-risky investments as the child ages.
Mix percentages of stocks, bonds and short term reserves are the same for both direct and advisor portfolios.
As you can see in the table above, the Conservative Age-Based Option has a higher concentration of assets in bonds or short-term investments than the Moderate Age-Based Option. These portfolios tend to be less volatile than those with higher stock allocations, so they may not decline as far when markets go down or appreciate in value as much when markets go up.
If you need assistance understanding these investments or have any questions, call us at 1.866.SAVE.529.
Ascensus Broker Dealer Services is the distributor of the North Dakota College SAVE plan, Learn more about Ascensus Broker Dealer Services, Inc. on FINRA's BrokerCheck.
For more information about North Dakota's College SAVE Plan (College SAVE), call 1-866-SAVE-529 (1-866-728-3529) or click here to obtain a Plan Disclosure Statement. Investment objectives, risks, charges, expenses, and other important information are included in the Plan Disclosure Statement; read and consider it carefully before investing. Ascensus Broker Dealer Services, Inc. (ABD) is Distributor of the College Save.
Before investing in any 529 plan, you should consider whether your or the designated beneficiary's home state offers a 529 plan that provides its taxpayers with state tax and other benefits that are only available through the home state's 529 plan. You also should consult your financial, tax, or other advisor to learn more about how state-based benefits (or any limitations) would apply to your specific circumstances. You also may wish to contact directly your home state's 529 plan(s), or any other 529 college savings plan, to learn more about those plans' features, benefits and limitations. Keep in mind that state-based benefits should be one of many appropriately weighted factors to be considered when making an investment decision.
College SAVE is a 529 plan established by the State of North Dakota. Bank of North Dakota (Bank) acts as trustee of College SAVE Trust, a North Dakota Trust, and is responsible for administering College SAVE Trust and College SAVE. ABD, the Plan Manager, and its affiliates, have overall responsibility for the day-to-day operations of the Plan, including recordkeeping and marketing. The Vanguard Group, Inc. (Vanguard) provides underlying investments for the Plan. The College SAVE's Portfolios, although they invest in mutual funds, are not mutual funds. Units of the Portfolios are municipal securities and the value of units will vary with market conditions.
Investment returns are not guaranteed and you could lose money by investing in College SAVE. Participants assume all investment risks, including the potential for loss of principal, as well as responsibility for any federal and state consequences.
Not FDIC Insured. No Bank, State or Federal Guarantee. May Lose Value.
Vanguard and the ship logo are trademarks of The Vanguard Group, Inc. Upromise is a registered service mark of Upromise, Inc. All other marks are the exclusive property of their respective owners. Used with permission.