Investing for K-12 goals

*The following is not intended as investment advice, but rather a guideline to consider if you choose to save for K-12 private or religious school tuition using a 529 Plan.
 

Consider our individual options when investing for your K-12 goals. With this do-it-yourself strategy, you'll select your own investments and manage your portfolio over time.
 

Keep in mind these considerations

Using 529 plans to save for a child's K-12 education presents investors with scenarios that are very different from saving for college with 529 plans.
 

Spending patterns

You will typically withdraw money from your 529 account over a much longer time frame if you are saving for both K-12 and post-secondary expenses.
 

Time horizon

When you include saving for K-12 educational expenses, you may have less time to save than if you are saving for college only.
 

4 tips for choosing your K-12 investments

• Determine when you'll need the money to pay for education expenses.
• Choose your investments based on when you'll need to use portions of your savings and your comfort level with risk.
• Revisit your asset allocation each year to see if you have the same risk tolerance and time horizon.
• Reallocate your investments if necessary.
   

An example of how you may invest $100

Let’s say you have $100 to invest - $75 for college and $25 for high school. One way you can consider investing is as follows:
 

• $75 in an age-based option which automatically adjusts overtime based on when the beneficiary is to attend college.
• $25 in an individual portfolio based on your risk tolerance for a child in kindergarten, who will need the account for private high school in 8 years.
   

Choose the right investments for your goal

  1. If you'd like to build your own portfolio, select from the plan's individual portfolios to create the asset allocation you're comfortable with. These investments cover all major asset classes - stocks, bonds, and short-term reserves. For each 529 account, you're limited to 5 investment options.
 

See College SAVE individual portfolios
 

  2. If your goal is 2 years away or less
 

If you'll need a portion of the money within 2 years, your main priority may be preserving your principal. Consider low-risk investments that are easy to access.

College SAVE offers the Interest Accumulation Portfolio that seeks to provide income with the preservation of principal.
 

Learn more about our Interest Accumulation Portfolio
 

Don't forget to review your investments

Because investing in individual portfolios is a do-it-yourself strategy, it's a good idea to review your portfolio regularly to make sure it's still in line with your goals, time horizon, and risk tolerance.
 

Reminders:

• You can only move money from 1 portfolio to another up to two times a year.
• When investing in an individual portfolio, the asset allocation of the portfolio remains fixed and will not automatically become more conservative over time.
• You should revisit your allocation periodically, especially if there are changes to your savings time horizon, risk tolerance, or personal situation.
   

Quick Links

• Overview
• Age-Based Portfolios
• Individual Portfolios
• Investing for K-12 Goals
• Portfolio Price and Performance
• Quarter-End Performance