An age-based investment is just that — it's based on the age of your child. You simply choose the Investment Track: Conservative, Moderate, Aggressive or Index. Then, we will use the track you select and your child's age to determine how to invest your assets. Your investment automatically moves to a more conservative portfolio as your child gets older.
Mark and Jane opened a 529 account when their son was a toddler. They set up recurring contributions through payroll deduction to automatically invest in their account. Knowing college was 15 years away, they selected the Aggressive Track to help maximize their long-term investment. As their child grows, the Track will move to a Moderate Portfolio then, finally, a Conservative Portfolio when their child becomes a teenager and they want to preserve what they have saved through the years.
Your child's age and whether or not you have an alternative source of funds to draw from are key factors to consider when selecting an Investment Track. The bottom line — the choice is yours based on your comfort level and investment goals.
Conservative, Moderate and Aggressive Tracks
These investment tracks let you invest based on your comfort with risk. You select a Conservative, Moderate or Aggressive Track, then we invest your assets in the portfolio that corresponds to that risk track and to your child's current age. Over time, your assets will move to one or more of the seven diversified portfolios that make up these three tracks. These seven portfolios invest in a mix of stock, bond and money market funds from American Century Investments, Vanguard and Baird.
|Conservative, Moderate and Aggressive Investment Tracks|
|Age of the Beneficiary||Conservative Track||Moderate Track||Aggressive Track|
||Very Aggressive Portfolio
|8-11||Very Conservative Portfolio
|12-14||Very Conservative Portfolio
|15-17||Very Conservative Portfolio
||Very Conservative Portfolio
|18+||Short-Term Portfolio||Short-Term Portfolio||Short-Term Plus Portfolio|
Learning Quest also offers an Index Track, which invests primarily in Vanguard index funds. In this track, your child's age will determine which of the three age-based index portfolios your assets will start in. As your child gets older, your assets move to one or more of the other age-based index portfolios. When your child turns 18, your account will move to the Short-Term Portfolio.
|Age of the Beneficiary||Age-Based Index Portfolio|
|0-10||Aggressive Index Portfolio
|11-14||Moderate Index Portfolio
There is no guarantee that the investment portfolios will achieve their investment objectives. The value of your Learning Quest account will vary, and a gain or loss may occur when you withdraw money from your account. The Annual Report provides detailed information about the Learning Quest Portfolios.