investment options
Account owners choose from three investment Options:
- The Managed Allocation Option
- The Interest Income Option
- The 100% Equity Option
Plan contributions made to the Managed Allocation Option will be invested in special portfolios based on the birth dates of Account beneficiaries, using stocks, bonds, and money market mutual funds in various percentages. As your Account beneficiary nears college age, your money will be invested more conservatively. The goal is for the fund to outpace tuition inflation. As with other equity and debt investments, the value of your Account is neither insured nor guaranteed, and principal and returns will fluctuate. So, at any given time, your Account may be worth more or less than the amount of your contributions. (Allocation guidelines are being updated and will be made available soon.)
Plan contributions made to the Interest Income Option will be invested in an interest-bearing note from VSAC. The goal is to provide investment returns that are at least equal to the 91-day Treasury Bill rate. Under the Interest Income Option, the value of your Account is neither insured nor guaranteed, and principal and returns will fluctuate. So, at any given time, your Account may be worth more or less than the amount of your contributions.
Plan contributions made to the 100% Equity Option will be invested in a blend of domestic and international stock mutual funds that, depending on performance, may produce above-average returns over the long term. Given the higher volatility of this option, the risk of loss is greater, particularly over a shorter investment horizon. Under the 100% Equity Option, the value of your Account is neither insured nor guaranteed, and principal and returns will fluctuate.
The tax information herein is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties. It was written to support the promotion of the Vermont Higher Education Investment Plan. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.
Consider the investment objectives, risks, charges and expenses before investing in the Vermont Higher Education Investment Plan. For details on the Managed Allocation Option, 100% Equity Option, and the Interest Income Option, refer to the Disclosure Booklet (PDF). Read the information carefully.
Before investing in a 529 plan, you should consider whether the state you or your designated beneficiary reside in or have taxable income in has a 529 plan that offers favorable state income tax or other benefits that are only available if you invest in that state's 529 plan.
TIAA-CREF Individual & Institutional Services, LLC member NASD and SIPC distribute securities products.
The State of Vermont, VSAC, TFI, Teachers Insurance and Annuity Association of America and its affiliates do not insure any Account or guarantee its principal or investment return. Account value will fluctuate based upon a number of factors, including general financial market conditions.
