Select Accounts
Introducing Year of Enrollment Portfolios
We’re transitioning our current Age-Based Enrollment Portfolios to Year of Enrollment Portfolios. Both Age-Based and Year of Enrollment Portfolios move from higher-risk to more conservative options automatically as your student ages/gets closer to enrollment in order to protect your investment. However, with Year of Enrollment Portfolios, these rebalances happen more often making for a smoother and more gradual shift in the portfolio and reducing market timing risk.
For more information, view the Program Description:
Important Information about a Trading Blackout during the Transition
There will be a program-wide trading blackout period beginning October 19, 2023, and ending October 25, 2023.
Any transaction requests that are rejected during the blackout will need to be resubmitted after the blackout.
What services will be impacted?
Here’s what to expect during the blackout period.
For more information, view the Program Description:
The trading blackout details for Merrill Select accounts are a bit different. If you are a Select account owner working with a Merrill advisor, see the Program Description or contact your Merrill advisor for details about the trading blackout.
New Accounts
New accounts will not be opened, and any initial contributions will not be invested. The paperwork and any checks received by the Program Manager during the blackout period will be rejected, returned to the participant or financial intermediary, and need to be resubmitted after the blackout period.
Contributions
Any contributions made during the blackout period will be rejected, not invested, and need to be resubmitted after the end of the blackout period. Any automated contributions scheduled during the blackout period will be rejected and need to be resubmitted after the blackout period.
Withdrawals
Withdrawal requests submitted during the blackout period will be rejected and need to be resubmitted after the blackout period ends.
Investment changes (exchanges)
Investment changes (exchanges) between portfolios submitted during the blackout period will be rejected and need to be resubmitted after the blackout period ends.
The Benefits of a Year of Enrollment Portfolio
Improved Market Risk Management with a Smoother Glide Path
Funds invested in a Year of Enrollment Portfolio will automatically rebalance four times per year. These smaller, more frequent adjustments mean a smoother and more gradual shift in the portfolio and can reduce market timing risk that comes with less frequent but larger changes.
Easy Portfolio Selection
Year of Enrollment Portfolios make it easy for new investors to select an investment option for their students. They simply choose the year they expect their student to enroll in school (K-12, college, university, trade school, or start an apprenticeship program or qualified certificate program).
Save for More than One Goal!
While many families will choose just one Year of Enrollment Portfolio for their student, some may like the fact that they can invest in several different Year of Enrollment Portfolios if they want to save for multiple types of education. For example, a family could easily save for three education goals such as K-12, post-secondary, and graduate by choosing three different Year of Enrollment Portfolios.
Also, families have the flexibility of changing their Year of Enrollment Portfolio if they expect their student to delay their start to higher education.
FAQs
I am currently invested in an Age-Based Portfolio. Do I need to do anything?
No, your accounts invested in any Age-Based Portfolio will automatically transition to a Year of Enrollment Portfolio. No need to worry about manually making this change – we’ve got you covered!
| Current Portfolio | New Portfolio |
|---|---|
| BlackRock Age-Based 0-1 Year Portfolio | BlackRock 2041 Enrollment Portfolio |
| BlackRock Age-Based 2-4 Years Portfolio | BlackRock 2038 Enrollment Portfolio |
| BlackRock Age-Based 5-7 Years Portfolio | BlackRock 2035 Enrollment Portfolio |
| BlackRock Age-Based 8-11 Years Portfolio | BlackRock 2033 Enrollment Portfolio |
| BlackRock Age-Based 12-13 Years Portfolio | BlackRock 2029 Enrollment Portfolio |
| BlackRock Age-Based 14-15 Years Portfolio | BlackRock 2027 Enrollment Portfolio |
| BlackRock Age-Based 16 Years Portfolio | BlackRock 2026 Enrollment Portfolio |
| BlackRock Age-Based 17 Years Portfolio | BlackRock 2025 Enrollment Portfolio |
| BlackRock Age-Based 18 Years Portfolio | BlackRock 2024 Enrollment Portfolio |
| BlackRock Age-Based 19+ Years Portfolio | BlackRock Enrolled Portfolio |
| iShares Age-Based 0-1 Year Portfolio | iShares 2041 Enrollment Portfolio |
| iShares Age-Based 2-4 Years Portfolio | iShares 2038 Enrollment Portfolio |
| iShares Age-Based 5-7 Years Portfolio | iShares 2035 Enrollment Portfolio |
| iShares Age-Based 8-11 Years Portfolio | iShares 2033 Enrollment Portfolio |
| iShares Age-Based 12-13 Years Portfolio | iShares 2029 Enrollment Portfolio |
| iShares Age-Based 14-15 Years Portfolio | iShares 2027 Enrollment Portfolio |
| iShares Age-Based 16 Years Portfolio | iShares 2026 Enrollment Portfolio |
| iShares Age-Based 17 Years Portfolio | iShares 2025 Enrollment Portfolio |
| iShares Age-Based 18 Years Portfolio | iShares 2024 Enrollment Portfolio |
| iShares Age-Based 19+ Years Portfolio | iShares Enrolled Portfolio |
| MFS Age-Based 0-2 Years Portfolio | MFS 2041 Enrollment Portfolio |
| MFS Age-Based 3-5 Years Portfolio | MFS 2038 Enrollment Portfolio |
| MFS Age-Based 6-7 Years Portfolio | MFS 2035 Enrollment Portfolio |
| MFS Age-Based 8-9 Years Portfolio | MFS 2033 Enrollment Portfolio |
| MFS Age-Based 10-11 Years Portfolio | MFS 2031 Enrollment Portfolio |
| MFS Age-Based 12-13 Years Portfolio | MFS 2029 Enrollment Portfolio |
| MFS Age-Based 14-15 Years Portfolio | MFS 2027 Enrollment Portfolio |
| MFS Age-Based 16 Years Portfolio | MFS 2025 Enrollment Portfolio |
| MFS Age-Based 17 Years Portfolio | MFS 2024 Enrollment Portfolio |
| MFS Age-Based 18+ Years Portfolio | MFS Enrolled Portfolio |
| Franklin Templeton Age-Based 0-6 Years Portfolio | Franklin Templeton 2036 Enrollment Portfolio |
| Franklin Templeton Age-Based 7-8 Years Portfolio | Franklin Templeton 2034 Enrollment Portfolio |
| Franklin Templeton Age-Based 9-10 Years Portfolio | Franklin Templeton 2032 Enrollment Portfolio |
| Franklin Templeton Age-Based 11-12 Years Portfolio | Franklin Templeton 2030 Enrollment Portfolio |
| Franklin Templeton Age-Based 13-14 Years Portfolio | Franklin Templeton 2028 Enrollment Portfolio |
| Franklin Templeton Age-Based 15 Years Portfolio | Franklin Templeton 2027 Enrollment Portfolio |
| Franklin Templeton Age-Based 16 Years Portfolio | Franklin Templeton 2026 Enrollment Portfolio |
| Franklin Templeton Age-Based 17 Years Portfolio | Franklin Templeton 2025 Enrollment Portfolio |
| Franklin Templeton Age-Based 18 Years Portfolio | Franklin Templeton 2024 Enrollment Portfolio |
| Franklin Templeton Age-Based 20+ Years Portfolio | Franklin Templeton Enrolled Portfolio |
The Franklin Templeton Age-Based 19 Years Portfolio will be merged with the Franklin Templeton Age-Based 20+ Years Portfolio and renamed as the Franklin Templeton Enrolled Portfolio, and all references to those two Portfolios in the Program Description will change to the Franklin Templeton Enrolled Portfolio.
Two new Franklin Templeton Year of Enrollment Portfolios will be established November 1, 2023:
- Franklin Templeton 2038 Enrollment Portfolio
- Franklin Templeton 2041 Enrollment Portfolio.
Will I be taxed for these changes?
No! These automatic portfolio transitions won’t be considered a taxable event or count as one of your two allowed yearly investment exchanges.
Is this a good time to review my investments and goals?
Absolutely! If you are aware that your student will not attend school during the year their Year of Enrollment Portfolio is assigned, you may want to change to a Year of Enrollment portfolio with a different target enrollment date. You can make that change after the new Year of Enrollment Portfolios are launched. Just keep in mind, if you do make an investment change, it will count as one of the two you are allowed each year.
USRRMH0923U/S-3114314