Mississippi Affordable College Savings Program (MACS)

Investment Options

The right college financing strategy may be one of the most important investment decisions you will make. What if you're not an investment professional? We know most people aren't, so we've set up a choice of three investment options. You can invest new contributions in any one or combination of these three investment options: the Managed Allocation Option, 100% Equity Option, and the Guaranteed Option. These investment options vary in their investment strategy and degree of risk, allowing you to select an option or combination of options that may fit your needs.

Changing Your Investments
Once you invest in a particular investment option, you can transfer contributions and any earnings to another investment option once per calendar year or upon a transfer of funds to a MACS account for a different beneficiary. (See the MACS Disclosure Booklet (PDF, 452KB) for more information.)

Periodically Review Your Investments
It's a good idea to periodically re-evaluate your investment strategy as your goals, investment horizon, and personal situation change - for example, annually at tax time, on a yearly basis if your income changes, or upon the birth of another child.

 

Managed Allocation Option
Investing in the Managed Allocation Option follows the method of using the number of years an investor has for saving to determine the appropriate investment allocation. The Managed Allocation Option is the core investment for the Mississippi Affordable College Savings Program. Although there is no guarantee that the investment objectives will be met, this option offers the opportunity to invest aggressively when the beneficiary is young, and over time, more conservatively, thus  creating a more balanced approach. The Plan allocates your contributions, together with any return on your contributions, under this investment option among the TIAA-CREF Funds - Institutional Class shown below. Aged-based investment portfolios combine equity, real estate, fixed income, and money market mutual funds offered by the TIAA-CREF Funds - Institutional Class. Younger beneficiaries will have a higher exposure to equities and real estate investments which will decrease significantly as they approach college age, as the following charts illustrate:

 Allocations for all investments are as of November 2008. Allocations are reviewed and adjusted periodically.

 

100% Equity Option
The Plan allocates your contributions, together with any return on your contributions, under this investment option among the TIAA-CREF Funds - Institutional Class shown below. Unlike the Managed Allocation Option, the allocation mix for this investment option will not be changed to reflect the age of the designated beneficiary as he/she approaches enrollment in an eligible educational institution.

The 100% Equity Option may be a good choice if you can tolerate greater risk and volatility in exchange for higher potential returns over time. It may also be appropriate for you if you already have substantial college savings from less volatile investments (e.g., fixed-income), if you have a longer time horizon or you want a balanced account by combining this option with the more conservative Managed Allocation Option.

  

Guaranteed Option
Your contributions to the Guaranteed Option, together with any return on your contributions will be allocated to a vehicle that guarantees the Mississippi Affordable College Savings Program both principal and a minimum annual interest rate of 3%, plus the opportunity for additional returns. The guarantee of a minimum rate of interest is made to the Mississippi Affordable College Savings Program by TIAA-CREF Life Insurance Company, but is not made directly to the account owner or beneficiary. This investment option seeks to provide the stability that people may want for a portion of their college investment.

Effective October 1, 2009, contributions received, and accumulations arising from such contributions, under the Funding Agreement for the Guaranteed Option as of September 30, 2009 will be credited to the Mississippi Affordable College Savings Program with an effective annual interest rate of 3.00% and are guaranteed to earn this rate through September 30, 2010, subject to the claims paying ability of TIAA-CREF Life. 

 

Underlying TIAA-CREF Funds - Institutional Class
Following is the list of underlying TIAA-CREF Funds - Institutional Class. For the Managed Allocation Option and 100% Equity Option, an investment in MACS is not the same as a direct investment in the mutual funds. Please read the prospectus for the TIAA-CREF Funds - Institutional Class for more information.

  • Large-Cap Growth Index Fund
  • Large-Cap Value Index Fund
  • S&P 500 Index Fund
  • Mid-Cap Growth Fund
  • Mid-Cap Value Fund
  • Small-Cap Equity Fund
  • Small-Cap Blend Index Fund
  • International Equity Fund
  • International Equity Index Fund
  • Real Estate Securities Fund
  • Bond Fund
  • Inflation-Linked Bond Fund
  • Money Market Fund
 

WE'RE HERE TO HELP

For informative articles on planning and investing, visit our Parent Resources section.

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The tax information contained on the Mississippi Affordable College Savings Program (the Plan) Web site is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties that may be imposed on the taxpayer. It was written to support the promotion of the products and services addressed in the Web site. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.

The Plan is administered by the Board of Directors of the College Savings Plans of Mississippi and the Mississippi Treasury Department. TIAA-CREF Tuition Financing, Inc. (TFI) serves as Program Manager.

The investment approaches described are not recommendations and do not take into consideration personal goals or preferences. After evaluating information you consider important in making an investment choice, the ultimate decision is up to you. It is a good idea to revisit your investment strategy periodically as your goals, personal financial situation, and market conditions change.

Consider the investment objectives, risks, charges and expenses before investing in the Plan. Please call toll-free 1-800-486-3670 for a Disclosure Booklet containing this information. Read it carefully.

Before investing in a 529 plan, you should consider whether the state you or your designated beneficiary reside in or have taxable income in has a 529 plan that offers favorable state income tax or other benefits that are only available if you invest in that state's 529 plan.

The State of Mississippi, its agencies, TIAA-CREF Tuition Financing, Inc., Teachers Insurance and Annuity Association of America and its affiliates do not insure any account or guarantee its principal or investment return. Account value will fluctuate based upon a number of factors, including general market conditions.

The Plan Web site is for informational purposes only, and does not constitute an offer to sell or solicitation of an offer to buy any security that may be referenced on the site. Such offer or solicitation can be made only through the Disclosure Booklet.

The Plan Web site contains links to other Web sites. Neither the Plan nor TFI and its affiliates are responsible for the content of those other Web sites. The accuracy of information on those sites cannot be confirmed.

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