Building a 529 Plan account that is right for you takes planning. The Oklahoma 529 College Savings Plan offers you a choice of nine Investment Options. These options vary in their investment strategy and degree of risk, allowing you to select an option or combination of options that may fit your needs.
For more information on the risks involved in investing in such investment options, and the type of investor for whom each investment option may be appropriate, read the Disclosure Booklet (PDF).
- Moderate Managed Allocation
- Conservative Managed Allocation
- Aggressive Managed Allocation
- U.S. Equity Index
- Diversified Equity
- Global Equity Index
- Fixed Income
Changing Your Investments
Once you invest in a particular investment option, you can transfer contributions and any earnings to another investment option once per calendar year or upon a transfer of funds to an Oklahoma 529 College Savings Plan account for a different beneficiary.
Periodically Review Your Investments
It's a good idea to periodically re-evaluate your investment strategy as your goals, investment horizon, and personal situation change - for example, annually at tax time, on a yearly basis if your income changes, or upon the birth of another child.
Managed Allocation Options
Investing in the Managed Allocation Options (Moderate, Conservative and Aggressive) follows the method of using the number of years an investor has for saving to determine the appropriate investment allocation. Although there is no guarantee that the investment objectives will be met, this option offers the opportunity to invest aggressively when the beneficiary is young, and over time, more conservatively, thus creating a balanced approach. Aged-based Investment Options combine equity, real estate, fixed income, and money market mutual funds offered by the TIAA-CREF Funds - Institutional Class. Younger beneficiaries will have a higher exposure to equities and real estate investments which will decrease significantly as they approach college age, as the following charts illustrate:
Moderate Managed Allocation Option (Risk level shifts from Aggressive to Conservative as the Beneficiary ages)
Conservative Managed Allocation Option (Risk level shifts from Aggressive to Conservative as the Beneficiary ages)
Aggressive Managed Allocation Option (Risk level shifts from Aggressive to Conservative as the Beneficiary ages)
U.S. Equity Index Option (Risk level - Aggressive)
This Investment Option seeks to provide favorable long-term growth, mainly from capital appreciation. The U.S. Equity Index Option invests 100% of its assets in the TIAA-CREF Equity Index Fund, which employs a "passive management" – or indexing – strategy and seeks a diversified portfolio selected to track the overall market for common stocks publicly traded in the U.S., as represented by a broad stock market index. Because of the high exposure to equity investments, and the corresponding high degree of risk, this Investment Option may be appropriate for you if you already have substantial college savings from less volatile investments (e.g., fixed-income investments) or you have a long investment horizon and you can tolerate a higher level of risk.
Diversified Equity Option (Risk level - Aggressive)
This Investment Option seeks to provide a favorable long-term total return, mainly from capital appreciation, by allocating to a diversified portfolio of mutual funds that include actively-managed domestic and international equity funds and a real estate-related securities fund. Given the higher volatility of this Investment Option, the risk of loss may be greater over a shorter investment horizon. However, this Investment Option may provide greater investment return opportunities over the long term. This Investment Option may be appropriate for you if you already have substantial college savings from less volatile investments (e.g., fixed-income investments) or you have a long investment horizon and you can tolerate a higher level of risk.
Global Equity Index Option (Risk level - Aggressive)
This Investment Option allocates to a portfolio of Mutual Funds that include domestic and international equity index funds and a real estate-related securities fund. Given the higher volatility of this option, the risk of loss can be greater over a shorter investment horizon.
Balanced Option (Risk level - Moderate)
This Investment Option seeks to provide a favorable long-term total return that reflects the broad investment performance of the financial markets by allocating to a diversified portfolio of Mutual Funds that include a mix of equity funds, a bond index fund, other fixed-income funds and a real estate-related securities fund. Because of the exposure to domestic and foreign equities, and the corresponding degree of risk, this Investment Option may be appropriate for you if you can tolerate a moderate degree of volatility in exchange for potentially higher returns over time.
Fixed Income Option (Risk level - Moderate)
This Investment Option seeks to provide a moderate long-term rate of return primarily through current income. This Investment Option may be appropriate for you if you have a medium-term investment horizon and can tolerate a moderate level of risk.
Guaranteed Option (Risk level - Conservative)
This Investment Option seeks to preserve capital and provide a stable return. It may be appropriate for you if you have a short investment horizon and are looking for a conservative investment with a low level of risk. The assets in this Investment Option are allocated to the Funding Agreement issued by TIAA-CREF Life to the Direct Plan, which is the policyholder under the agreement. The Funding Agreement provides for a return of principal plus a guaranteed rate of interest and allows for the possibility that additional interest may be credited as declared periodically by TIAA-CREF Life. The interest rate guarantee is made to the Direct Plan only, and not to Account Owners or Beneficiaries. The rate of any additional interest is declared in advance for a period of up to 12 months and is not guaranteed for any future periods.
Effective April 1, 2013, accumulations under the Funding Agreement for the Guaranteed Option as of March 31, 2013, as well as contributions received on or after April 1, 2013, are credited to the Oklahoma 529 College Savings Plan with an effective annual interest rate of 1.15%, and are guaranteed to earn this rate through March 31, 2014, subject to the claims-paying ability of TIAA-CREF Life Insurance Company.
Allocations for all investments are as of August 2013. Allocations are reviewed and adjusted periodically.
Account values are not guaranteed and will fluctuate with market conditions. For a complete discussion of risks associate with each investment option, please refer to the Disclosure Booklet.
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