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Investment Options

Planning

When you enroll in the Program, you will need to select one or more investment options for your Account funds. Choosing your Account investments takes planning. You need to consider your savings goals, risk tolerance, investment objectives, and select Investment Options suitable to your investment needs. The Investment Options section of the Program Disclosure Statement helps you to understand the types of Investment Options offered under the Program and the risks involved in investing in such Investment Options. The Program offers five different Investment Options. Four are Managed Allocation Options and one is a Bank Savings Account Option.

Aggressive

The Aggressive Allocation Option seeks to provide growth of your investment.

Moderate

The Moderate Allocation Option seeks to provide a combination of growth and current income.

Moderately Conservative

The Moderately Conservative Allocation Option seeks to provide current income and some growth.

Conservative

The Conservative Allocation Option seeks to provide stability for current income with limited or minimal growth.

Bank Option:

  • Bank Savings Account Option*

*The Plan Manager and the Board have agreed to voluntarily waive the Program Management Fee and the State Administrative Fee, respectively (but, in each case, not below zero) to the extent necessary to assist the Bank Savings Account Option in attempting to maintain at least a 0.00% return before monthly fees and transaction fees are deducted. There is no guarantee that the Bank Savings Account Option will maintain at least a 0.00% return. This undertaking may be amended or withdrawn at any time. Even if the Bank Savings Account Option maintains at least a 0.00% return, the Monthly Account Maintenance Fee and other applicable fees will be subtracted from your Account balance. This means that if you invest only in the Bank Savings Account Option, your Account balance will be less than the amount you contribute to your Texas ABLE Program Account after applicable fees are withdrawn.

Managed Allocation:

The Managed Allocation Options’ underlying mutual funds invest in the following asset classes:

  • All Cap U.S. Equity
  • All Cap Non-U.S. Equity
  • Core Fixed Income
  • Bank Loans

You may allocate your contributions to one of the Investment Options, or you may choose to allocate your contributions to more than one Investment Option. Please be aware that you can transfer your money from your current Investment Option(s) to another Investment Option(s) only twice per calendar year. Designated Beneficiaries should periodically assess and, if appropriate, adjust their investment choices with their time horizon, risk tolerance, and investment objectives in mind. Future contributions to your Account are not limited to your initial Investment Option elections. After you have enrolled, you may change your Investment Option election(s) by:

  • Choosing additional Investment Options for future contributions;
  • Stopping contributions to an existing Investment Option; or
  • Transferring funds in your Account, subject to the twice-yearly limits, to other Investment Options.

If you choose to change your Investment Option selections, change your allocations, or stop your contributions to any Investment Option, you may do so online.