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Enrollment year investment portfolios
Select your enrollment year
Your first step is to determine the expected enrollment year of your client's designated beneficiary. Next, select the Enrollment Portfolio closest to the date of enrollment.
Example: for a future student who is currently 5 years of age that will likely begin post-secondary school at 18 years of age, your client would select the 2034/2035 Enrollment Portfolio.
Enrollment year investment portfolio target allocations
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529s beyond higher education
Through the use of 529 plans, financial professionals help clients save for all types of qualified education, including public, private and religious K-12, college/university, technical college, professional and graduate schools1. You are able to adjust the expected year of enrollment by selecting the Enrollment Portfolio that makes sense for their situation.
Align risk tolerance
If your client is a conservative investor, you may wish to choose an earlier Enrollment Portfolio regardless of the year the designated beneficiary needs the money for school. Conversely, client objectives that are more aggressive can select a later year. Alternatively, instead of selecting a different enrollment year portfolio, you may select from the Target allocation portfolios based on their client’s risk tolerance.
1 Withdrawals for K-12 tuition expenses at a public, private or religious elementary, middle, or high school; registered apprenticeship programs; and student loan repayments can be withdrawn free from federal taxes, see the Plan Description for limitations. State tax treatment of withdrawals for these expenses is determined by the state where you file state income tax. For Colorado taxpayers, withdrawals for K-12 tuition expenses and student loan repayments will be treated as non-qualified withdrawals subject to Colorado state income tax and Colorado's deduction recapture provisions. Colorado state tax treatment of withdrawals used for apprenticeship expenses has not yet been determined.
There are various risks associated with an investment in the Scholars Choice Education Savings Plan; principal loss is possible. The Scholars Choice Education Savings Plan’s Investment Portfolios are subject to the risks of the underlying fund(s) in which they invest and other risks, as described in the Plan Description. To obtain a more complete description of the investment policies and risks of the underlying funds, please refer to the current prospectuses for the underlying funds. The Target Allocation Portfolios are currently comprised of four Investment Portfolios.
The Target Allocation Portfolios are designed for account owners who prefer a diversified Investment Portfolio with a fixed risk level rather than a risk level that changes as the Designated Beneficiary ages.
The Enrollment Year Investment Portfolios are intended for Account Owners who prefer an Investment Portfolio with a risk level that becomes increasingly conservative over time as the Designated Beneficiary approaches expected enrollment in an Eligible Educational Institution and/or expected year in which amounts will be withdrawn to pay for Qualified Higher Education Expenses. There are ten target Enrollment Year Investment Portfolios that invest in multiple underlying funds, each of which has a different investment strategy.
Before investing, carefully consider the investment objectives, risks, charges and expenses of the Scholars Choice Education Savings Plan, including whether the investor’s or designated beneficiary’s home state offers any state tax or other benefits that are only available for investment in such state’s qualified tuition program. For this and other information that should be read carefully, please read the Plan Description or request one at 888-5-SCHOLAR (888-572-4652).
Participation in the Scholars Choice Education Savings Plan does not guarantee that the account’s assets will be adequate to cover future tuition or other higher education expenses, or that a designated beneficiary will be admitted to or permitted to continue to attend an institution of higher education. Contributions to an Account and the investment earnings if any, are not guaranteed or insured.