Enrollment Year Investment Option

This is the simple, all-in-one investment option based on the projected date you will need the money to pay for education expenses.

The Enrollment Year Investment Option is a set of single fund options representing the date your future student needs their college savings (i.e., their enrollment year). The asset allocation or mix of equities, bonds, and cash adjusts automatically as the enrollment year approaches. This option can be a good all-in-one solution to achieve investment diversity with no extra work once you select your fund.


How it Works


Select Your Enrollment Year

Your first step is to determine the expected enrollment year of your future student. Typically, families assume their student will need their education savings at age 18. Then subtract the current age of your student from 18. This is the number of years until your future student begins higher education. Next select the enrollment year fund closest to the date of enrollment. So, for a future student who is currently 5 years of age who you anticipate will begin college when they are 18 years old, you'll likely begin using your college savings in 13 years. This means an individual would select the 2032/2033 fund for this example to align.

Enrollment Year Investment Options




Consider Your Education Savings Goals

Families can also take advantage of the versatility of the Enrollment Year Investment Option to save for all types of qualified education, including college/university, technical college, professional and graduate schools, and K-12 tuition*. Simply adjust the expected year of enrollment in your calculation to select your new enrollment year fund. So, if it is anticipated that a 5-year old future student will begin using the funds at age 22, the 2034/2035 fund may be selected.

*Please see the state tax treatment of withdrawals used towards K-12 school tuition here.




Align with Your Risk Tolerance

What level of risk are you comfortable with? You can find out by taking our Risk Tolerance Quiz. If you are a conservative investor, you may wish to choose an earlier enrollment year fund regardless of the year your future student begins college or technical college. More aggressive investors can select a later date. Investors aligning with their risk tolerance or seeking particular investment objectives can view asset allocation across enrollment year dates below to help guide their decision.



Asset Allocation by Enrollment Year Investment Option

Slide along the bar to the Enrollment Year Investment Option that corresponds to the year you think your child will start needing their funds. Then view the investment mix change from more aggressive to more conservative as your child gets closer to the projected date of needing the funds.

Enrollment Year Investment Option:



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