When you enroll in the Program, you will need to select 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 four different Investment Options. Three are Managed Allocation Options and one is a Bank Option.
Aggressive Allocation Option
The Aggressive Allocation Option seeks to provide growth of your investment.
Moderate Allocation Option
The Moderate Allocation Option seeks to provide a combination of growth and current income.
Moderately Conservative Allocation Option
The Moderately Conservative Allocation Option seeks to provide current income and some growth.
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 This undertaking may be amended or withdrawn at any time.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balance will be less than the amount you contribute to your Texas ABLE Program Account after applicable fees are withdrawn.
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
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.
Performance shown below is not indicative of future results. Your investment results may be better or worse. You should review the Investment Options section of the Program Disclosure Statement carefully before making your selections. See the Texas ABLE Allocation Worksheet for more information on underlying investments and fees.
The performance data quoted above represents past performance, which does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s units, when redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted.
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Texas ABLE Moderately Conservative Allocation Option
Texas ABLE Bank Savings Account Option
1. Performance data for each portfolio are based on the total return of a hypothetical account, including reinvestment of dividends and distributions, net of the Texas ABLE program and administration fees.
2. Expense ratios for each of the portfolios include underlying investment expenses and plan fees.
3. If applicable, the “Net Expense Ratio” for the portfolios takes into account a voluntary expense limitation on the underlying investment without which performance would have been less. These undertakings may be modified or terminated at any time. Please see the Plan Description for more detailed information regarding any applicable expense limitations or waivers.
4. The Plan Manager and the Board have agreed to voluntarily waive the Program Management Fee and the State Administrative Fee, but in each case not below zero, to the extent necessary to assist the Bank Savings Account Option in maintaining 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 this return. The Plan Manager and the Board may amend or withdraw the waivers of the Management Fee and State Administrative Fee at any time.
5. Only monies placed in the FDIC-insured Bank Savings Account Option are insured under the guidelines of the Federal Deposit Insurance Company (“FDIC”). Program Accounts, contributions, and rates of return on investment are not guaranteed by (i) the State of Texas or its respective officials or employees, (ii) the Board, its committees, or their individual members, (iii) agents, advisers, subcontractors, or consultants retained by or on behalf of the entities in (i) through (iii) of this section, or (iv) any other federal or state entity, or private person or entity. You could lose money on your investment in the Program.
6. Any expression of after-tax return is made under the assumption that a given investor will use the proceeds of a distribution for qualified disability expenses as required by federal law. An investor’s failure to use the proceeds of a distribution as intended could result in a lower after-tax yield or return.
* These “year to date” returns are cumulative and are not annualized. Short-term returns may not be indicative of longer-term performance, which should also be considered when making investment decisions.