College Foundation of North Carolina

 

Age-Based Investment Options

Short descriptions of the different Age-Based Investment Options available in the NC 529 Plan are below.
 
Age-Based Options
Conservative, Moderate or Aggressive Tracks.
With three Vanguard Age-Based Investment Options, you can choose the track that best suits your risk tolerance. Once you select a track, the Program will automatically place your assets in the age range in which your Beneficiary falls and migrates them as appropriate based on the Beneficiary's birth date.

 
* Investment returns are not guaranteed and you could lose money by investing in the Program.
 

Vanguard is a registered trademark of The Vanguard Group, Inc.
 
1 The Vanguard Interest Accumulation Portfolio has certain limitations restricting transfers out to the Federally-Insured Deposit Account. See "Equity Wash Rule" in North Carolina's National College Savings Program Description, dated December 7, 2015 for details under INVESTMENT OPTIONS - VANGUARD AGE-BASED AND INDIVIDUAL INVESTMENT OPTIONS - Vanguard Interest Accumulation Portfolio.
 

For more information about North Carolina's National College Savings Program, please review the complete Program Description and Enrollment Agreement available on this website or contact 800-600-3453 to request an enrollment kit that includes both. Before opening an Account, or contributing funds to an existing Account, you should carefully read and consider the Program Description, which includes information on investment objectives, risks, charges, expenses, and other important information.

North Carolina's National College Savings Program is a program of the State of North Carolina, established and maintained by the North Carolina State Education Assistance Authority (Authority) as a qualified tuition program under federal tax law, and administered by College Foundation, Inc. (CFI) Current Investment Options are offered by State Employee's Credit Union (SECU) and The Vanguard Group, Inc. (Vanguard)

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

Accounts are not bank or credit union deposits and are not insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration (NCUA). Neither the Contributions nor the earnings thereon invested in a Program Account are backed by the full faith and credit of the State of North Carolina or guaranteed by the Authority, CFI, SECU, or Vanguard. Not withstanding the foregoing, contributions and interest earned thereon allocated to the Federally-Insured Deposit Account Investment Option are guaranteed by the State Employees' Credit Union and insured by the NCUA, which is backed by full faith and credit of the United States Government. The value of a Participant's Account will fluctuate depending on the market conditions and the performance of the Investment Option selected. You could lose money by investing in the Program. Participants assume all responsibility for federal and state tax consequences.