INVESTMENT OPTIONS

The NC 529® Plan offers a wide variety of investment options from multiple investment managers designed to help you meet educational objectives for your beneficiary. Detailed information on each investment option is available in the Program Description and should be reviewed in full before you decide. Consider each option before deciding which one(s) fit your time frame, savings objectives and risk tolerance.

Our investment options include:

AGE-BASED FUNDS that change their investment style to match when the funds will be needed. Earlier on they hold more aggressive funds and then transfer to more conservative investments to help ensure that the money is there for college. These funds utilize:

Vanguard’s Aggressive Track which invests in stocks they feel have a high potential for growth

Vanguard’s Moderate Track for investments that provide more consistent risk and reward

Vanguard’s Conservative Track for established investments used to preserve the money saved.

INDIVIDUAL FUNDS offer a wide variety of funds so each person can choose investments that match their own financial philosophy. These include:

Dependable Income Fund (Managed by the State Treasurer of North Carolina) is a portfolio of highly liquid fixed income securities, including money market accounts and government securities to provide a safe and liquid investment fund.

Federally-Insured Deposit Account (Provided by State Employees’ Credit Union) is a deposit account that offers income, protection of principal and earnings, and federal deposit insurance.

Vanguard Aggressive Growth Portfolio invests in more rapidly changing investments to quickly grow the funds invested.

Vanguard Growth Portfolio seeks to grow the money invested through low to moderate income producing investments.

Vanguard Moderate Growth Portfolio works with investments that produce growth of capital and current income.

Vanguard Conservative Growth Portfolio works with more consistent investments to produce income and low to moderate growth of capital.

Vanguard Income Portfolio utilizes dividend-producing investments for current income.

Vanguard Money Market Portfolio* seeks to provide income consistent with the preservation of principal.

Vanguard Total Stock Market Index Portfolio tracks the performance of a benchmark index that moves up and down with the overall stock market.

Vanguard Total International Stock Index Portfolio is tied to the performance of a benchmark index that measures the investment return of stocks of companies located in developed and emerging markets outside the United States.

Vanguard Total Bond Market Index Portfolio seeks to replicate the performance of a broad, market-weighted bond index.

* Features of a qualified tuition program are complex and involve significant tax issues. The earnings portion of a withdrawal not used for qualified higher education expenses is subject to federal income tax and a 10% federal tax penalty tax, as well as state and local income taxes. The availability of tax benefits may be contingent on meeting other requirements.

©2016 College Foundation, Inc.