Ready-Made, AGE-BASED PORTFOLIOS
The CollegeAdvantage age-based options are the simplest of all our Direct Plan investment options. We call them “ready-made” because the asset mix and allocation milestones are pre-determined. They are designed to take into account your child’s age and the number of years before he or she attends college. As your child grows, your portfolio shifts from growth to lower risk options. This is achieved by reallocating the asset mix each time the beneficiary reaches set age intervals, from a mix weighted toward equity (stocks) to a mix weighted toward fixed-income (bonds) and money market funds. Our age-based options are our most popular because they offer a long-term investment plan and an easy way to begin saving for college.
There are four age-based options to meet your needs. Three are primarily invested in passively managed Vanguard index options, offering a conservative, moderate, and aggressive age-based choice. The fourth is The Advantage Age-Based Portfolio, which invests in four carefully selected portfolios, each with an asset mix of individual CollegeAdvantage equity (stock) and fixed-income (bond) options, providing a blend of passive and active fund management from multiple fund managers.
Please refer to the CollegeAdvantage Offering Statement and Participation Agreement for details.