CollegeAmerica 529 Savings Plans | American Funds

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CollegeAmerica by the Numbers

LAUNCHED IN 2002

CHOSEN BY MORE THAN 110,000 ADVISORS AND MORE THAN 1 MILLION FAMILIES 
NATIONWIDE

THE COUNTRY’S LARGEST PLAN, WITH ASSETS TOPPING $50 BILLION 1

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For more information, call us at (800) 421-9900, ext. 529.

CollegeAmerica® 529 Savings Plans

CollegeAmerica is the nation’s largest 529 college savings plan,2 offering built-in simplicity, comprehensive support materials, and quality investment options.
  • Consistently recognized by Morningstar® as a highly rated advisor-sold 529 plan.3
  • Low 529 expenses are among the most affordable in the 529 industry and they just got lower.4
  • Flexible, easy-to-use investment options, including target date funds.

Individual CollegeAmerica Plans

Advisors

  • Among Morningstar’s top‐ranked advisor‐sold 529 college savings plans since 2004, the year they began issuing ratings.3
  • An attractive estate-planning vehicle, with tax benefits that allow clients to contribute up to $14,000 ($28,000 for married couples) annually without gift-tax consequences. Under a special election, clients can invest up to $70,000 ($140,000 for married couples) at one time by accelerating five years’ worth of investments.
  • Easy-to-use Investment options managed by experienced professionals using Capital Group’s multi-manager approch.
  • Service and support to help you open, offer and service accounts for clients.
  • A nationwide plan sponsored by Virginia529,SM our longstanding state sponsor.

Investors

  • A tax‐advantaged investment vehicle specifically designed for higher education investors.
  • Anyone can open a 529 college savings plan, regardless of how much money they make.
  • Contribution limits allow clients to invest until the account’s value reaches $500,000.
  • CollegeAmerica’s combination of features could outweigh the tax benefit one receives for investing in a state-sponsored plan.

Convenience — A single investment provides a “funds of funds” portfolio of American Funds aligned with an investor’s time horizon. A carefully monitored college savings glide path means no more manual reallocation for you.

Objective-focused — With objectives like preservation and appreciation, these “funds of funds” offer diversification and control in a single investment.

Customization — Build a college savings portfolio of your preferred American Funds, or select a single-fund option. Either way, you control the investment mix.

Advisors and higher education savers from all 50 states are using CollegeAmerica to save for college. CollegeAmerica is available in 529‐A, 529‐C, 529‐E and 529‐F share classes.


Employer-Sponsored CollegeAmerica Plans


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. 

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. Before investing in any state's 529 plan, investors should consult a tax advisor. 

1

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

2

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

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.

Content contained herein is not intended to serve as impartial investment or fiduciary advice. The content has been developed by Capital Group, which receives fees for managing, distributing and/or servicing its investments.