Your guide to choosing investments
When you open a College Savings Iowa 529 account, we suggest you follow this 3-step process to choose your investments.
1. Assess your comfort level with risk
Before you choose your investments, you will want to consider your investment personality.
Do you find it easy to accept major market declines? If so, you may be comfortable with a more aggressive investment approach. However, if you are someone who is concerned when your balance decreases by even a small percentage, you might prefer a more conservative approach.
How long you have to save before your student reaches college age is also an important consideration.
See what type of investor you are
2. Decide which strategy is right for you
Do you want a portfolio that is professionally managed for you (age-based savings tracks)? Or, do you want to create one from your own mix of investments (individual portfolios) and manage it yourself over time?
3. Select your investments
College Savings Iowa's investment options cover all major asset classes—stocks, bonds and short-term reserves. The cost of these investments is the same. No matter which investments you choose, you pay only $1.80 per year for every $1,000 you invest (0.18% applied annually).
reserves
funds
funds
less potential risk/reward more
Potential risk/reward varies depending on the type of Investment Option chosen. The risk/reward is less with short-term reserves, moderate with bond funds and more with stock funds.
Age-based savings tracks
There are 4 diversified options with different levels of risk. Once you know what your investment personality is you will be better able to determine which level is most comfortable for you. Whichever track you choose will adjust automatically over time.
Individual portfolios
College Savings Iowa offers 10 options from which you can choose up to 5 investments to create your own custom asset allocation. You then manage your investments, diversifying and adjusting the risk level of your savings according to your own strategy.
Note: Detailed descriptions for all of the investment options are also included in the Program Description.
