*Source: savingforcollege.com, April 2016.
This is a program that offers outstanding flexibility, attractive investments, and additional economic benefits (such as generous state tax incentives) that for some people, at least, will provide a substantial boost to their savings. There are few, if any, weaknesses noted in the program. 5 Cap Ratings represent the attractiveness of a 529 plan, relative to all other 529 plans, by assigning an overall rating to each 529 program ranging from 1 Cap (least attractive) to 5 Caps (most attractive). 5 Cap Ratings represent an assessment based on many considerations such as flexibility, liquidity and availability, ownership rights, state benefits, investment approach and safety, program resources and financial aid impact. It is not strictly a measure of historical returns, and it is not a predictor of future investment performance, level of investment risk or financial solvency of the program funds. These ratings are not the result of a fixed formula and a significant portion of the analysis is subjective.
Before establishing a 529 account and making contributions, it is imperative that investors read and understand all enrollment materials and disclosures from the programs.
Please read the applicable Plan Disclosure Statement (PDS) carefully before investing. The PDS explains certain risks, fees, limitations, restrictions and qualifications regarding the Plan's benefits and potential tax advantages. Investments in CollegeInvest Plans are not guaranteed by the State of Colorado, CollegeInvest, or any other governmental entity, and may lose value, including the principal amount invested. Administered and issued by CollegeInvest, State of Colorado.
If you or your designated beneficiary are a resident of a state other than Colorado, before investing you should check with your home state to see if it offers a 529 plan. That plan may offer state tax or other benefits to residents of that state that may not be available to investors in plans of other states.
Cash Reserve Portfolio
An investment in the Cash Reserve Portfolio is not a bank deposit and is not insured or guaranteed by the FDIC or any other governmental agency. There is no assurance that the Cash Reserve Portfolio will be able to maintain the value of its units at $1 per unit. It is possible to lose money by investing in this option. The Cash Reserve Portfolio will not seek capital appreciation and may under-perform other investment options.
While the Cash Reserve Portfolio will invest all of its assets in a money market mutual fund and will value its units based on the underlying money market fund share value, the Cash Reserve Portfolio itself is not a money market mutual fund.
Capacity of Dealer and Other Parties
CollegeInvest is the issuer of plan securities and is the trustee of the plans in accordance with Colorado law. CollegeInvest also oversees the Manager 's activities and provides certain administrative services, such a marketing, audit, and financial statements, in connection with the plans.
QS Legg Mason Global Asset Allocation, LLC is the Investment Manager and Legg Mason Investor Services, LLC is the primary distributor of interests in the Scholars Choice Plan; together they serve as Manager of the Plan.
Legg Mason Investor Services, LLC receives no compensation with respect to the Direct Portfolio Plan, Smart Choice Plan, and/or Stable Value Plus Plan and assumes no responsibility with respect thereto. Legg Mason Investor Services, LLC does not provide investment management, administrative, marketing or any services for the Direct Portfolio Plan, Smart Choice Plan, and/or the Stable Value Plus Plan.
CollegeInvest and the CollegeInvest logo are registered trademarks. Scholars Choice is a registered service mark of CollegeInvest.