The NextGen Savings Portfolio is the newest addition to the NextGen College Investing Plan investment line up! This portfolio seeks the preservation of principal and may be an investment to consider if you are nearing the time you will need to pay for qualified higher education expenses.
This new portfolio is comprised exclusively of an interest-bearing FDIC insured bank deposit account (“the Bank Deposit Account”)
at Bank of America, N.A. (the “Bank”), and is designed as an option for investors whose primary objective is protection of principal.
If you choose to invest in the NextGen Savings Portfolio, you can receive FDIC insurance up to $250,0001 and all of the flexibility
and benefits of investing in NextGen!
Click here to learn more about NextGen’s investment options.
Please remember there is always the potential of losing money when you invest in securities.
1 The portion of the underlying deposits in the Bank Deposit Account that is attributable to the Units held by a Participant in the NextGen Savings Portfolio or the Principal Plus Portfolio is (a) eligible for FDIC insurance coverage of up to $250,000 per Participant (calculated on a basis which aggregates that portion of the underlying deposits attributable to the Units held by the Participant in the NextGen Savings Portfolio or the Principal Plus Portfolio with all FDIC-insured assets held by the Participant at the Bank) and (b) for purposes of FDIC insurance coverage only, considered to be held in the same ownership capacity as a Participant’s other single ownership accounts held at the Bank. However, neither Units of the NextGen Savings Portfolio nor the Principal Plus Portfolio are insured or guaranteed by the FDIC or any other agency of state or federal government, FAME, the Bank or the Program Manager, nor does a Participant have a direct beneficial interest or the rights of an owner in the underlying deposits in the Bank Deposit Account. Participants are responsible for monitoring the aggregated value of the portion of the underlying deposits of the NextGen Savings Portfolio or the Principal Plus Portfolio attributable to the Units of such Portfolios held by a Participant plus their other deposits held directly with the Bank, for purposes of the $250,000 FDIC insurance coverage limit. The percentage of the Principal Plus Portfolio that is invested in the Bank Deposit Account as of the end of each month will be posted on www.nextgenplan.com/performance.html within ten business days of month-end. Deposits held in different ownership capacities, as provided in the FDIC rules, are insured separately. UGMA/UTMA Accounts are generally treated as assets of the Designated Beneficiary, and other types of trust Accounts may be treated as assets of the trustee, for purposes of the FDIC limit. Custodians of UGMA/UTMA Accounts and trustees of trust Accounts should consider how these assets will be treated for purposes of the FDIC limit. For more information, please visit www.fdic.gov.