CollegeAmerica® Overview | American Funds

                       

                              

                                      

                                                

                                                   

               


For more information, call us at (800) 421-9900. Investors, please contact your financial professional.

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About CollegeAmerica®

Launched in 2002, CollegeAmerica is the nation’s largest 529 plan,1 with assets topping $58 billion.2 It has been chosen by more than 110,000 advisors and more than 1 million families nationwide.

A Trusted Plan

  • CollegeAmerica comes with American Funds’ service, support and a long-term investment track record.
  • Among Morningstar’s top-ranked advisor-sold 529 college savings plan.3
  • Virginia529, our longstanding state sponsor, shares our commitment to college savings.

Built-In Simplicity

  • CollegeAmerica features flexible and easy-to-use investment options, including target date funds.
  • We’ve made it easier for advisors to open, offer and service accounts with a comprehensive suite of 529 resources.
  • Our fees and expenses are among the lowest in the 529 industry.4
  • CollegeAmerica’s contribution limits allow clients to invest until the account’s value reaches $500,000.


Learn more about the features, benefits and investment options of our CollegeAmerica 529 Savings Plans.


American Funds College Target Date Series®

Our seven target date funds were designed to address the key challenges of saving for the rising costs of a higher education. A single investment provides diversification and a glide path matched to your clients’ investing time horizon, making saving for college easier than ever.

How the College Target Date Series Works

  1. Choose a fund

    Choose the fund with the target date closest to the year the student is expected to enroll in college.

  2. Fund is adjusted over time

    Over time, experienced investment professionals will adjust the underlying mix of American Funds so that the allocations remain appropriate for the fund’s time horizon.

  3. Assets remain until withdrawn

    Eventually the assets transition into the College Enrollment Fund, a preservation-oriented portfolio of high-quality, shorter term bonds. The assets remain there until they’re withdrawn.

     


Key Benefits

  • Simplified diversification
  • Actively monitored
  • Time-tested American Funds investments

Other CollegeAmerica Investment Options

Individual Mutual Funds

The American Funds available in CollegeAmerica can be combined for those seeking a customized and diversified portfolio.

American Funds Portfolio Series

These “funds of funds” were designed to pursue a common investor objective such as preservation, income or growth.


American Funds College Target Date Series Glide Path

* The nearest dated fund merges with the College Enrollment Fund when it reaches its target enrollment date.
The target allocations shown are as of January 1, 2017, and are subject to the Portfolio Oversight Committee’s discretion. The funds’ investment adviser anticipates that the funds will invest their assets within a range that deviates no more than 10% above or below these allocations. Underlying funds may be added or removed during the year. For quarterly updates of fund allocations, visit americanfunds.com.

 


Building Your Practice

For many advisors, college savings represents an untapped opportunity to meet new prospects and establish long-term relationships. Here are a few of the practice-building strategies featured in our suite of CollegeAmerica advisor resources:

 


College Savings and Estate Planning

Grandparents often contribute to college savings and may not be aware of the estate-planning benefits that a 529 college savings plan offers.

 


Connecting Businesses With CollegeAmerica

For employers, 529 plans are a great, no-cost way to reward employees. For advisors, they offer a foot in the door to build long-term relationships with businesses.

82% of investors say that they would likely open a 529 plan if offered by their employer.5


College Savings Tools and Resources

Our comprehensive suite of college savings resources includes practice-building ideas and how-tos to help you with every aspect of your 529 business – from prospecting to enrollment.

Planning Tools

College Savings Calculator — Determine how much clients need to save to attend a specific college, and see if their plans are on track.


How-To Guides

Step-by-step instructions on college planning topics such as client servicing and business development can help you service clients and grow your business.



Client Conversations

College savings talking points and presentations can help address common client concerns.


Forms & Literature

Find college savings forms, applications, client education, sales materials and more in our Forms & Literature section.



529 State Tax Interactive Map

Use our interactive map to view in-state options and benefits to determine which 529 savings plan makes the most sense.


Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses, summary prospectuses and CollegeAmerica Program Description, which can be obtained from a financial professional and should be read carefully before investing. CollegeAmerica is distributed by American Funds Distributors, Inc. and sold through unaffiliated intermediaries. 

This material is intended for use by financial professionals or in conjunction with the advice of a financial professional.

The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds. 

Investment allocations for funds of funds may not achieve fund objectives. There are expenses associated with the underlying funds in addition to fund-of-funds expenses. The funds' risks are directly related to the risks of the underlying funds, as described herein. The target allocations are as of January 1, 2017, and are subject to the Portfolio Oversight Committee's discretion. The funds’ investment adviser anticipates that the funds will invest their assets within a range that deviates no more than 10% above or below these allocations. Investment professionals gradually adjust the portfolio over time so that it becomes more preservation-oriented. The funds' allocation strategy does not guarantee that investors' education savings goals will be met. The target date is the year in which the beneficiary is expected to begin taking withdrawals. Investors and their advisors should periodically evaluate their investment to determine whether it continues to meet their needs. 

Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries. 

Depending on your state of residence, there may be an in-state plan that provides state tax and other state benefits, such as financial aid, scholarship funds and protection from creditors, not available through CollegeAmerica. CollegeAmerica is sponsored by Virginia529℠. 

1

Largest by assets, according to the Q2 2017 529 College Savings Quarterly Data Update from Strategic Insight.

2

American Funds. As of July 31, 2017, CollegeAmerica AUM is $58.4B.

3

"Morningstar Names Best 529 College-Savings Plans for 2016," October 2016. Among the criteria Morningstar assessed were fees, flexibility of investment options and a solid manager selection process.

4

CollegeAmerica has some of the lowest expenses in the 529 industry, according to Morningstar’s “529 College-Savings Plan Landscape”, May 2016.

5

2017 529 Industry Analysis from Strategic Insight. Percentage is based on a consumer survey where investors chose certainly, very likely or somewhat likely as answers that they would open a 529 plan if offered by their employer.