This article is part of a series on the ABLEnow investment options. It’s intended to help you maximize the advantages of your ABLEnow account by removing some of the guesswork from investment decisions. The information should not be considered investment and financial advice.
An ABLEnow account is a smart way to save. But contributing is only the first step. You should also consider investing the money to align with your financial goals.
Remember, your ABLEnow account is not an investment in itself — it’s an account that holds your savings and investments, with unique advantages for individuals with disabilities.
Investing is a smart way to put your money to work for you. Earnings on your ABLEnow investments can compound tax-free, which offers the potential for significant growth over the long-term.
The first $2,000 in your ABLEnow account is automatically allocated to the FDIC-insured ABLEnow Deposit Account, which is linked to your ABLEnow Card. Once the balance in the ABLEnow Deposit Account exceeds $2,000 (or a higher amount set by the Account Owner or Authorized Representative), you may invest additional contributions into one or more investment portfolios.
Select your investments in the ABLEnow online portal. Click “Accounts” in the top navigation bar. Then follow the step-by-step “Investment Account Setup” instructions.
ABLEnow offers several target-risk portfolios. This specific type of mutual fund holds a diversified mix of stocks, bonds and other investments. It’s professionally managed to maintain a certain risk level over time.
One of the target-risk portfolio options available to ABLEnow customers is the Conservative Income Portfolio.
Spotlight: Conservative Income Portfolio
A conservative income portfolio provides a combination of current income (interest and dividends) and capital preservation through market cycles. The strategy also has potential for low to moderate long-term capital appreciation while protecting downside principal loss.
The ABLEnow Conservative Income Portfolio invests entirely in the Vanguard LifeStrategy Income Fund. The fund maintains a balanced and static asset allocation of 80% bonds (56% U.S. bonds, 24% international bonds) and 20% stocks (12% U.S. stocks, 8% international stocks) through a highly diversified indexed structure.
Read more about the Conservative Income Portfolio option.
It’s good practice to periodically review your investments to make sure they are still in line with your needs. It’s also important to understand costs. The ABLEnow Conservative Income Portfolio has an asset-based fee of 0.36%. This means you’ll pay an annual fee of about 36 cents for every $100 you’ve invested in the fund. Review the ABLEnow Program Description for more details.
- Consider investing the money in your ABLEnow account.
- Earnings on your ABLEnow investments can compound tax-free, which offers the potential for significant growth over the long-term.
- One target-risk investment option is the ABLEnow Conservative Income Portfolio. It maintains a target asset allocation of 80% fixed income, 20% equity.
- Periodically review your investments to make sure they are still in line with your needs.
All investing is subject to risk, including the possible loss of the money you invest. Fluctuations in the financial markets and other factors may cause declines in the value of your account. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you growth and earnings.
ABLEnow cannot and will not provide legal, financial, or tax advice, and nothing herein or in any other written materials shall be construed as such.