How did Wealthfront recommend my 529 investment plan and glide path?
We use your answers to our risk questionnaire to recommend an investment plan for your 529 account. Our 529 investment questionnaire evaluates your:
- Subjective willingness to take risk.
- Consistency in your responses to subjective risk assessment questions.
- Objective ability to take risk based on your projected resources to fund college expenses compared to the projected cost of education (for all children, where relevant).
- Desired type of higher education institution (e.g. public/private, 2- or 4-year institution) for your beneficiary.
Using this data, we compute a risk score and use it to recommend an optimal investment plan with an appropriate level of risk and return by using an appropriate glide path.
Your glide path helps determine the overall risk and return of your portfolio. It is defined using three parameters: the risk level of its starting portfolio, the risk level of its final portfolio and the timing to transition from the initial portfolio, through some number of intermediate-risk portfolios to the final portfolio. In general, higher risk glide paths will have both higher-risk initial and final portfolios. They will also start their transition later in the investment horizon.
For more information about the Wealthfront 529 College Savings Plan (the “Plan”), download the Plan Description and Participation Agreement or request one by calling
844-995-8437 or emailing email@example.com. Investment objectives, risks, charges, expenses, and other important information are included in the Plan Description and Participation Agreement; please read and consider it carefully before investing. An investment in the Plan is not insured or guaranteed by the FDIC or any federal or state government or agency. You could lose all or portion of your investment. Wealthfront Brokerage Corporation serves as the distributor and the underwriter of the Plan.
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
The Plan is administered by the Board of Trustees of the College Savings Plans of Nevada (the “Board”), chaired by the Nevada State Treasurer. Ascensus Broker Dealer Services, Inc. (“ABD”) serves as the Program Manager.
Earnings on nonqualified withdrawals are subject to federal income tax and may be subject to a 10 percent federal tax penalty, as well as state and local income taxes. The availability of tax and other benefits may be contingent on meeting other requirements.
The information contained is provided for general informational purposes, and should not be construed as investment advice. Nothing should be construed as tax advice, solicitation or offer, or recommendation, to buy or sell any security. Financial advisory services are only provided to investors who become Wealthfront clients. This article is not intended as tax advice, and Wealthfront does not represent in any manner that the tax consequences described here will be obtained or will result in any particular tax consequence.
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