Enrollment Year Investment Portfolios

Consider this if: You’re looking for an all-in-one solution to manage your savings over the long term without extra work on your part.

Our Enrollment Year Investment Portfolios make things simple for you—maybe that’s why it’s our most popular portfolio. You simply pick the one that matches the year your child will enter college and the asset allocation adjusts over the years to become more conservative as the enrollment year approaches. It's a great way to minimize risk as you get closer and closer to using your account to pay for qualified education expenses. Watch this enrollment year investments video to learn more.

Step 1: Select your enrollment year

Your first step is to determine the expected date you will need to use the savings. Typically, families assume their student will need their education savings at age 18. Once you’ve estimated that date, 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 that they will begin college at 18 years old, they may need their college savings in the year 2033 (2015 + 18). This means you would select the 2032/2033 Enrollment Portfolio.

Step 2: Select your investment management approach

The asset allocations in the Enrollment Year Investment Portfolios gradually become more conservative over time through a quarterly rebalancing process. You may choose a passive or active strategy for the underlying funds when choosing an Enrollment Year Investment Portfolio.

Passive management

Consider this if:

You prefer to invest primarily in portfolios that are indexed.

  • Passive management is a low-cost investment strategy that attempts to match, rather than outperform, a particular stock or bond market index, also known as indexing

Active management

Consider this if:

You prefer to invest in portfolios that are actively managed.

  • An actively managed fund has a portfolio manager or a team of managers who, through the combination of research, market forecasting, experience and expertise, actively manage the fund in an attempt to beat a particular benchmark (usually a broad index)
  • Portfolio choices include environmental, social and corporate governance (ESG) options*

Footnotes

  1. *Responsible investing incorporates Environmental Social Governance (ESG) factors that may affect exposure to issuers, sectors, industries, limiting the type and number of investment opportunities available, which could result in excluding investments that perform well.

Step 3: Learn more about investment options.

Step 4: Start their education savings now!

Open an Account

Enrollment Year Investment Portfolio Glidepath

How does it work?

For each Enrollment Year Investment Portfolio, the allocation or mix of equities, bonds and capital preservation adjusts automatically to become more conservative as the enrollment year approaches.

How Enrollment Year Investment Portfolios can work for you

The asset allocation in the Enrollment Year Investment Portfolios invests more money in the stock market when your child is younger and gradually becomes more conservative over time through a quarterly rebalancing process.

Learn more about this popular investment category.

Things to consider

Your education savings goals

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

Footnotes

  1. *Withdrawals for tuition expenses at a public, private, or religious elementary, middle, or high school can be withdrawn free from federal tax. For California taxpayers these withdrawals are subject to state income tax and an additional 2.5% California tax. You should talk to a qualified professional about how tax provisions affect your circumstances.

Your risk tolerance

What level of risk are you comfortable with? You can find out by answering our Risk Tolerance questions. If you are a conservative investor, you may wish to choose an earlier enrollment year portfolio regardless of the year your future student begins 4-year college/university, community college or technical school. 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 above to help guide their decision.

Resources

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