FINANCIAL TOOLS & RESOURCES

Education Planning Definitions

529 Plan

A state-sponsored, tax-advantaged investment program that helps save for future college education expenses. There are two types of 529 plans: prepaid tuition plans and college savings plans.

Risk Disclosures

Investing involves risk, including potential for loss.

An investment in the Money Market Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.

The stocks of small companies are more volatile than the stocks of larger, more established companies.

Bonds are subject to interest rate risk and may decline in value due to an increase in interest rates.

Enrollment Based Portfolios are similar to target date funds in that their investment objectives are adjusted over time to be more conservative as their target date (date the investor plans to start withdrawing funds) approaches. The principal value of the fund(s) is not guaranteed at any time, including at the target date.

Before investing in a 529 plan, consider the plans investment objectives, risks, charges, and expenses. Contact the plan issuer for an official statement containing this and other information. Read it carefully.

An investor should consider, before investing, whether the investor's or designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program.

AP2013/10/1921

Not FDIC Insured

  • No Bank Guarantee
  • May Lose Value