Maybe you`ve been saving for a while and your account has grown steadily – but the college years are just around the corner. You are satisfied with what you have and do not want surprises. It`s no longer about getting big returns, it`s about making sure what you have is safe. You may just want to make sure that the posts on your account are protected. The assets of this investment option are allocated to a financing agreement issued by TIAA-CREF Life Insurance Company (“TIAA-CREF Life”), a subsidiary of TIAA-CREF Tuition Financing, Inc., to KHEAA as policyholder. The financing agreement provides for a guaranteed minimum return on the amounts allocated to it by the investment option. The effective minimum annual interest rate shall never be less than 1% or more than 3%. The guarantee is provided by the insurance company to the policyholder, not to the account holders. In addition to the guaranteed interest rate for the policyholder, the financing agreement provides for the possibility that additional interest may be credited as regularly reported by TIAA-CREF Life.

The interest rate for additional interest is declared in advance for a period of up to 12 months and is not guaranteed for future periods. The current effective annual interest rate on the secured option credited to KY Saves 529 until June 30, 2021 is 1.45%, subject to the creditworthiness of TIAA-CREF Life Insurance Company. There is a risk that TIAA-CREF Life will not meet its obligations under the financing agreement for financial or other reasons. Prepaid plans allow you to pay in advance all or part of the cost of a state public higher education. They can also be converted for use in private and non-state universities. The Private College 529 plan is a separate prepaid plan for private colleges. There are 2 types of prepaid plans: contractual plans and unit plans. . Compare just 529 plans sold through financial advisors. Using an advisor means that you benefit from the advice and expertise of an investment professional, but may mean paying selling fees or charging other fees that are used to compensate the advisor.

Compare just 529 plans where investors buy directly from the plan manager. You`ll have to rely on your own research to identify your best options, or you can hire a paid financial planner. These plans are approved and supervised by each state and managed by professional investment companies. There are no selling fees for these plans. With our 529 comparison tool, you can adjust your comparison according to the factors that are important to you. 529 ABLE accounts allow Americans living with disabilities to save money for college and other expenses in a tax-deferred account without compromising their eligibility to receive Medicaid, additional security income, or other public benefits. .