Glossary

1 5 A B C D E F G H I L M N P Q R S T U W Y
1 5 A B C D E F G H I L M N P Q R S T U W Y

A

  • ABLE Account

    An ABLE account is a savings account that is similar in design to a 529 plan, but is used to save for the future costs of a special needs beneficiary.

  • Account Owner

    The person who establishes a 529 plan account. The account owner controls the investments in and distributions from such account and may change the beneficiary.

  • Active Management

    A portfolio is actively managed when the portfolio manager dynamically changes the investments in the portfolio from time to time, with the goal of outperforming one or more benchmarks.

  • Additional Tax
  • Administrative Fee

    A fee charged by the state that sponsors and administers the 529 plan.

    See also: Plan Management Fee.

  • Advisor-Sold

    An advisor-sold 529 plan is a 529 plan in which accounts are sold by a financial professional, often with various fees and charges not applied to accounts in a direct-sold 529 plan.

  • Age of Majority

    The age of majority is the age at which a child becomes an adult. It is typically an age from 18 through 21, depending on the state.

  • Age-Based Asset Allocation Portfolio

    An age-based asset allocation portfolio is a portfolio offered as part of an age-based investment option.

  • Annual Rate of Return

    The annual rate of return is the return on investment expressed as a percentage of the investment’s assets.

  • Asset

    An asset is property with financial value that can be bought and sold.

  • Asset Allocation Portfolio

    Account assets invested in an age-based investment option will be allocated initially to an age-based asset allocation portfolio which corresponds to the age of the account’s beneficiary. The allocation of each age-based asset allocation portfolio’s assets reflects the time horizon of the portfolio’s beneficiary population (based on the age and likely time until enrollment). Account assets in a portfolio are redeemed when the beneficiary attains an age greater than the age range that corresponds to such portfolio, and are reinvested in another portfolio that corresponds to the beneficiary’s age. The asset allocation strategy for this investment option becomes increasingly conservative with each successive age-based asset allocation portfolio.

  • Asset Class

    An asset class is a type of investment. Examples include equities (stocks), fixed income (bonds), money market (short-term) and cash.

  • Automated Clearing House (ACH)

    ACH is a form of electronic funds transfer that is popular with direct deposit for payroll and tax refunds.

  • Automatic Investment Plan (AIP)

    An AIP periodically transfers money from a bank account or through payroll direct deposit to a 529 plan account.

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For more information about The Education Plan, call 1.877.337.5268 or view the Plan Description and Participation Agreement, which includes investment objectives, risks, charges, expenses, and other important information; read and consider it carefully before investing.

Please Note: Before you invest, consider whether your or the beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in that state’s qualified tuition program. You also should consult a financial, tax, or other advisor to learn more about how state-based benefits (or any limitations) would apply to your specific circumstances. You also may wish to contact directly your home state’s 529 plan(s), or any other 529 plan, to learn more about those plan’s features, benefits and limitations. Keep in mind that state-based benefits should be one of many appropriately weighted factors to be considered when making an investment decision.

The Education Plan is administered by The Education Trust Board of New Mexico. Ascensus College Savings Recordkeeping Services, LLC, the Program Manager, and its affiliates, have overall responsibility for the day-today operations, including investment advisory, recordkeeping and administrative services. The Education Plan’s portfolios invest in: (i) mutual funds; (ii) exchange traded funds; and/or (iii) a funding agreement issued by New York Life. Investments in The Education Plan are not insured by the FDIC. Units of the portfolios are municipal securities and the value of units will vary with market conditions.

Investment returns will vary depending upon the performance of the portfolios you choose. You could lose all or a portion of your money by investing in The Education Plan depending on market conditions. Account owners assume all investment risks as well as responsibility for any federal and state tax consequences.

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The Education Plan® and The Education Plan® Logo are registered trademarks of The Education Trust Board of New Mexico used under license.

All other marks are the exclusive property of their respective owners.

Not FDIC-Insured. No Bank, State or Federal Guarantee. May Lose Value.