Age-Based Portfolios

3 age-based options

These intuitive Portfolios simplify the investment process by doing the work for you.  The Portfolio in which we start your age-based investing is based on the age of the child.  The younger the child, the more that is invested in stocks.  Stocks historically have provided additional potential for growth but also have more fluctuations (ie: ups and downs, also known as volatility).  As the child gets closer to college age the assets shift to portfolios with reduced stock exposure and an increased investment in bonds and money market investments.

The Aggressive Age-Based option places investments in mutual funds focused heavily on stocks in the early years.  Stocks have the potential for the highest returns, but also are the most risky.  They can be ideal for longer time horizons where stock values can potentially ride out peaks and lows.  College savings for a newborn child are initially invested 100% in stocks.  At age 10 the portfolio has begun to shift and is invested 80% in stocks and 20% in bonds.  As the Beneficiary nears college age, the portfolio is invested 20% stocks, 70% bonds and 10% cash equivalents.

The Moderate Age-Based option invests in mutual funds more balanced between stocks and bonds.  This allocation between stocks, bonds and cash has more moderate return potential than Aggressive, but also has less risk.  College savings for a newborn child are initially invested 80% in stocks and 20% in bonds.  At age 10 the portfolio has begun to shift and is invested 60% in stocks and 40% in bonds.  As the Beneficiary nears college age, the portfolio is invested 50% bonds and 50% cash equivalents.

The Conservative Age-Based option is the least risky of the Age-Based Portfolios, but also has the lowest return potential.  This asset allocation model offers mutual funds that concentrate primarily in bonds and cash with a lower allocation to stocks in comparison to the other two Age-Based options.  College savings for a newborn child are initially invested 60% in stocks and 40% in bonds.  At age 10 the portfolio has begun to shift and is invested 40% in stocks and 60% in bonds.  As the Beneficiary nears college age, the portfolio is invested 100% in cash equivalents.

Legend

  0-8 years 9-12 years 13-16 years 17-20 years 21+ years
Age-Based Aggressive Fund 100
FUND 100		 Fund 80
FUND 80		 Fund 60
FUND 60		 Fund 40
FUND 40		 Fund 20
FUND20
Age-Based Moderate Fund 80
FUND 80		 Fund 60
FUND 60		 Fund 40
FUND 40		 Fund 20
FUND 20		 Fixed Income
FIXED INCOME
Age-Based Conservative Fund 60
FUND 60		 Fund 40
FUND 40		 Fund 20
FUND 20		 Fixed Income
FIXED INCOME		 100 Percent
100%

 

Alabama TreasurerUnion Bank

The CollegeCounts 529 Fund is a qualified tuition program under Section 529 of the Internal Revenue Code that is sponsored by the State of Alabama and administered by the Board of Trustees of the ACES Trust Fund (the “Trust” and plan issuer). Union Bank & Trust Company serves as Program Manager. Accounts and investments under the CollegeCounts 529 Fund are not insured or guaranteed by the FDIC, the State of Alabama, the State Treasurer of Alabama, the Board, the Trust, the Program, Union Bank & Trust Company, or any other entity.

Before investing, you should consider the investment objectives, risks, fees, expenses, and tax consequences associated with the Program. All of this information is contained in the Program Disclosure Statement. Please read it carefully before investing.

If you or your beneficiary is not an Alabama resident, consider whether your home state or the home state of your designated beneficiary offers a qualified tuition program that provides a state tax deduction or other benefits to residents who invest in that program.