Investment Options
Building a 529 Plan account that is right for you takes planning. The Mississippi Affordable College Savings (MACS) Program offers you a choice of three Investment Options. These options vary in their investment strategy and degree of risk, allowing you to select an option or combination of options that may fit your needs.
For more information on the risks involved in investing in such investment options, and the type of investor for whom each investment option may be appropriate, read the Disclosure Booklet (PDF).
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Investment Options
Changing Your Investments
Once you invest in a particular investment option, you can transfer contributions and any earnings to another investment option once per calendar year or upon a transfer of funds to a MACS Program 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.
Managed Allocation Option
Investing in the Managed Allocation Option follows the method of using the number of years an investor has for saving to determine the appropriate investment allocation. The Managed Allocation Option is the core investment for the Mississippi Affordable College Savings Program. Although there is no guarantee that the investment objectives will be met, this option offers the opportunity to invest aggressively when the beneficiary is young, and over time, more conservatively, thus creating a more balanced approach. The Plan allocates your contributions, together with any return on your contributions, under this investment option among the TIAA-CREF Funds - Institutional Class shown below. Aged-based investment portfolios combine equity, real estate, fixed income, and money market mutual funds offered by the TIAA-CREF Funds - Institutional Class. Younger beneficiaries will have a higher exposure to equities and real estate investments which will decrease significantly as they approach college age, as the following charts illustrate:
Managed Allocation Option
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Allocations for all investments are as of September 2011. Allocations are reviewed and adjusted periodically.
U.S. Equity Index Option
The Plan allocates your contributions, together with any return on your contributions, under this investment option among the TIAA-CREF Funds - Institutional Class. Unlike the Managed Allocation Option, the allocation mix for this investment option will not be changed to reflect the age of the designated beneficiary as he/she approaches enrollment in an eligible educational institution.
The 100% Equity Option may be a good choice if you can tolerate greater risk and volatility in exchange for higher potential returns over time. It may also be appropriate for you if you already have substantial college savings from less volatile investments (e.g., fixed-income), if you have a longer time horizon or you want a balanced account by combining this option with the more conservative Managed Allocation Option.
Guaranteed Option
This Investment Option seeks to preserve capital and provide a stable return. It may be appropriate for you if you have a short investment horizon and are looking for a conservative investment with a low level of risk. The assets in this Investment Option are allocated to a Funding Agreement issued by TIAA-CREF Life to the Trust, which is the policyholder under the agreement. The Funding Agreement provides for a return of principal plus a guaranteed rate of interest and allows for the possibility that additional interest may be credited as declared periodically by TIAA-CREF Life. The interest rate guarantee is made to the Trust only, and not to Account Owners or Beneficiaries.
Effective October 1, 2011, accumulations (including contributions and earnings) under the Funding Agreement for the Guaranteed Option as of September 30, 2011 will be credited to MACS with an effective interest rate of 3.0%, subject to the claims-paying ability of TIAA-CREF Life Insurance Company.
Account values are not guaranteed and will fluctuate with market conditions. For a complete discussion of risks associate with each investment option, please refer to the Disclosure Booklet.
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