Effective January 1, 2023, Virginia529 has made a few changes to its roster of investment options.
Invest529’s Target Enrollment portfolios help families manage their higher education investment by automatically becoming more capital preservation-oriented over time. This process occurs annually, with the most recent evolution effective as of January 1, 2023.
In addition, Virginia529 has transitioned the 2018 Portfolio to the 100% Stable Value investment portfolio, per the Invest529 Program Description. Related: Three Things to Know about Stable Value Portfolios
Consolidation of the 2018 Portfolio and Stable Value portfolios reduces expenses associated with maintaining multiple portfolios invested in the same stable value investment vehicle, keeping Invest529 administrative fees low.
If you are saving in a Target Enrollment portfolio, you do not need to take any action for the evolution, but you will notice differences online or on your statements after January 1, 2023. This is not considered an investment change and therefore is not subject to the twice-yearly IRS limit on investment direction changes.
Virginia529 is also now offering a 2042 Portfolio within its Invest529 Target Enrollment roster. The 2042 Portfolio will be the suggested portfolio for children between the ages of 0-3 years. Target Enrollment Portfolios, also known as the “set it and forget it” approach to investing, follow a strategy that annually shifts from riskier investments (like equities) and toward more conservative investments (like bonds and cash) each year as you get closer to using the funds for your child’s post-high school education. Related: Invest529 Opens a New Target Enrollment Portfolio
Invest529 account owners can take advantage of this new portfolio by opening an additional account or changing an existing investment to this new portfolio. Remember, account owners are limited to only two investment direction changes per calendar year.