Edvest College Savings Plan

Stable Principal Investment Options

If you have a short investment horizon or you’re looking to preserve your funds, the Stable Principal Investment Options may be right for you.

Maybe you’ve been saving for a while and your account has been steadily growing - but the college years are just around the corner. You’re happy with what you’ve got and you don’t want any surprises. It’s no longer about getting big returns, it’s about making sure what you’ve got is safe. Perhaps you just want to make sure the contributions to your account are protected.

Either way, you might want to consider the Stable Principal Investment Options, which is a good way to safeguard your money with next to no risk.

Changing Your Investments

Once you invest in a particular investment option, you can transfer contributions and any earnings to another investment option up to twice per calendar year or upon a transfer of funds to an Edvest 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.


How the Stable Principal Investment Options Work

This investment seeks to preserve capital and provide a stable return. You may want to consider it if you have a short investment horizon and are looking for a conservative investment with a low level of risk.

Stable Principal Investment Options
(Risk Level – Conservative)
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BANK CD PORTFOLIO

Investment Objective. This Investment Option seeks income consistent with the preservation of principal.

Investment Strategy. This Investment Option seeks to achieve its objective by investing at least 80% of its assets in CDs, with a maturity not to exceed 24 months, insured by the FDIC and issued by banks with a main, home, or branch office located in Wisconsin (“Eligible Banks”). Interest rates payable on the underlying CDs will be set by the issuing Eligible Banks based on current market conditions and are not uniform.

 100.00%Bank CDs or other short-term investments, including mutual funds
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PRINCIPAL PLUS INTEREST

Investment Objective. This Investment Option seeks to preserve capital and provide a stable return.

Investment Strategy. The assets in this Investment Option are allocated to a funding agreement issued by TIAA-CREF Life, which is an affiliate of TFI, to the Wisconsin College Savings Program Trust as the policyholder on behalf of the Plan. The funding agreement provides a minimum guaranteed rate of return on the amounts allocated to it by the Investment Option. The minimum effective annual interest rate will be neither less than 1% nor greater than 3% at any time. The guarantee is made by the insurance company to the policyholder, not to Account Owners. In addition to the guaranteed rate of interest to the policyholder, the funding agreement allows for the possibility that additional interest may be credited as declared periodically by TIAA-CREF Life. Accumulations (including contributions and earnings) under the Funding Agreement for the Principal Plus Interest Investment Portfolio will be credited to Edvest with an effective annual interest rate of 1.35% and are guaranteed to earn this rate through December 31, 2017, subject to the claims-paying ability of TIAA-CREF Life.



100.00%Funding Agreement
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Stable Principal Investment Options

(Risk Level – Conservative)

Stable Principal Investment Options
INVESTMENT OPTION NAME ALLOCATION INVESTMENT OPTION OBJECTIVE
BANK CD
PORTFOLIO
Investment Objective. This Investment Option seeks income consistent with the preservation of principal.

Investment Strategy. This Investment Option seeks to achieve its objective by investing at least 80% of its assets in CDs, with a maturity not to exceed 24 months, insured by the FDIC and issued by banks with a main, home, or branch office located in Wisconsin (“Eligible Banks”). Interest rates payable on the underlying CDs will be set by the issuing Eligible Banks based on current market conditions and are not uniform.

100.00%Bank CDs or other short-term investments, including mutual funds
Read More X
PRINCIPAL
PLUS
INTEREST
Investment Objective. This Investment Option seeks to preserve capital and provide a stable return.

Investment Strategy. The assets in this Investment Option are allocated to a funding agreement issued by TIAA-CREF Life, which is an affiliate of TFI, to the Wisconsin College Savings Program Trust as the policyholder on behalf of the Plan. The funding agreement provides a minimum guaranteed rate of return on the amounts allocated to it by the Investment Option. The minimum effective annual interest rate will be neither less than 1% nor greater than 3% at any time. The guarantee is made by the insurance company to the policyholder, not to Account Owners. In addition to the guaranteed rate of interest to the policyholder, the funding agreement allows for the possibility that additional interest may be credited as declared periodically by TIAA-CREF Life. Accumulations (including contributions and earnings) under the Funding Agreement for the Principal Plus Interest Investment Portfolio will be credited to Edvest with an effective annual interest rate of 1.35% and are guaranteed to earn this rate through December 31, 2017, subject to the claims-paying ability of TIAA-CREF Life.

100.00%Funding Agreement
Read More X

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