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.
Spotlight: Money Market Portfolio
A money market portfolio is designed to be a safe, low risk investment that generates income for the investor with a strict focus on preservation of principal. Money market funds provide investors an avenue to invest in highly secure and highly liquid cash-equivalent assets that exhibit better returns and higher levels of interest income than traditional bank savings accounts. For example, the ABLEnow Money Market Portfolio currently pays an interest rate yielding above 5%, while the national average yield for savings accounts is less than 0.75%.
The ABLEnow Money Market Portfolio invests entirely in the Fidelity Investments Money Market Government Portfolio. This fund typically invests over 99% of the fund’s total assets in cash, U.S. government securities, and government repurchase agreements. While not insured by the Federal Deposit Insurance Corporation (FDIC), money market funds seek to limit exposure to losses due to credit, market, and liquidity risks. The funds are required by federal regulations to invest in short-maturity, low-risk investments, making them less prone to market fluctuations than most other types of investments.
Read more about the Money Market 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 Money Market Portfolio has an asset-based fee of 0.39%, comprised of fund management expenses and administration costs. This means you’ll pay an annual fee of about 39 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 investment option is the ABLEnow Money Market Portfolio. It offers a very low level of risk.
- 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.