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Assumes an 8% average annual rate of return (compounded monthly) for both investments and a 25% income tax rate. (The typical mutual fund investor falls into the 25% tax bracket.) Your tax rate may vary. Current minimum tax rates on capital gains and dividends could make taxable investment returns higher, thus reducing the difference between the two ending values. Results shown are hypothetical and are not intended to represent an investment in a specific fund. Your investment experience will differ. Regular investing does not ensure a profit or protect against loss. You should consider your willingness to keep investing when share prices are declining.
Designed for use with advisers Among the lowest operating expenses* Diverse investment options Experienced investment management Low start-up amounts Among Morningstar’s top-rated 529 plans
since 2004†
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* According to a 2011 Morningstar study of 529 college savings plans† Based on annual Morningstar reports. Among the criteria Morningstar assessed were fees, flexibility of investment options and the fund company’s record of treating shareholders well.
Never too early … or too lateHow your monthly investment could have grown
U.S. stocks are measured by Standard & Poor’s 500 Composite Index. Source for CDs — Thompson 180-day CDs. Results assume reinvestment of all distributions and, for American Balanced Fund, are hypothetical prior to the 529 share-class inception date of 2/15/02. The indexes are unmanaged and, therefore, have no expenses.
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Steady progress during a difficult period (18 years ended December 31, 2011)
Figures shown are past results for Class A shares and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Fund results are for Class A shares and reflect a deduction of the maximum sales charge (5.75% for equity funds). For current information and month-end results, visit americanfunds.com.
This sample asset allocation is for illustrative purposes only. V2
BalancedIncludes everything from growth stocks to bonds, which may be appropriate when your beneficiary has a few years until college or if you’re seeking to reduce volatility.
This sample asset allocation is for illustrative purposes only. V2
PreservationA mix of bond funds designed to offer stability (relative to growth funds) and fixed-income diversity as the first day of college is drawing nearer.
American Funds investment resultsAverage annual total returns for periods ended 6/30/12
Figures shown are past results for Class A shares and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Fund results are for Class A shares and reflect a deduction of the maximum sales charge (5.75% for equity funds). For current information and month-end results, visit americanfunds.com.
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The expense ratio is as of the fund’s prospectus available at time of publication. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit americanfunds.com for more information.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses, summary prospectuses and CollegeAmerica Program Description, which can be obtained from a financial professional and should be read carefully before investing. CollegeAmerica is distributed by American Funds Distributors®, Inc. and sold through unaffiliated intermediaries.
Depending on your state of residence, there may be an in-state plan that provides tax and other benefits not available through CollegeAmerica.
CollegeAmerica is sponsored by Virginia 529. CollegeAmerica is distributed by American Funds Distributors® and sold through unaffiliated intermediaries.
You should discuss the tax implications of 529 plans with your legal and/or tax advisers, as features may vary significantly from state to state. You should read the appropriate 529 plan program description before investing. It includes details about the plan’s risks, charges and tax treatment.
Most 529 plans will accept both in-state and out-of-state applicants. While federal tax treatment of 529 plans is identical regardless of the state plan, state tax treatment varies. State tax treatment may also vary for in-state and out-of-state residents.
Each state’s 529 plan must be evaluated based upon its own merits relative to your needs, including the tax effects on the contributor and the beneficiary.
Regular investing neither ensures a profit nor protects against loss in a declining market.
The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. Bond prices and a bond fund’s share price will generally move in the opposite direction of interest rates.
Diversifying investments does not insure against market loss.
Investing outside the United States involves risks such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries.
Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds.
Small-company stocks entail additional risks, and they can fluctuate in price more than larger company stocks.
An investment in the money market fund is not insured or guaranteed by the FDIC or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.