Professional Documents
Culture Documents
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Curriculum
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MI 529 Advisor Plan
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The trend is not your friend…
U.S. college tuition, fees, room and board for fulltime Projected cost of college for four years with inflation:
undergraduate students based on 1 academic year. public and private colleges 2020-2037
2020 Dollars
(adjusted for inflation) 2037 $230,069 $536,629
Example assumes attending school at age 18 for 4-years. The chart to the right assumes 4-years at an annual college cost inflation rate of 5%. Public college costs based on in-state rates.
Source: The College Board, 2020
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Are any of these on your list?
Estimated Cost of a College Education – Tuition Pricing Only
Annual Cost Estimate* 4 Year Estimate*
University of Chicago $60,552 $242,208
Duke University $60,244 $240,976
Harvard $54,002 $216,008
University of Michigan $15,948 $63,792
Michigan State University $14,460 $57,840
Central Michigan University $12,960 $51,840
Western Michigan University $13,017 $52,068
Eastern Michigan University $13,810 $55,240
MI college costs are in-state tuition and fees. Room & Board not included.
All other costs are out-of-state tuition and fees. Room & Board not included.
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Wherever you go: Learning = Earning
Average lifetime earnings expectations
rise with level of education.
Source: U.S. Census Bureau, Current Population Survey, 2020 Annual Social and Economic Supplement. The figures are based on 2019
earnings projected over a typical work life, defined by the Census Bureau as the period from ages 25 through 64.
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Do what you love, but do consider…
Best Jobs for the Future
Job Growth Rate (2017-27) Median Annual Salary
Physician Assistant 35.3% $104,986
Nurse Practitioner 35.2% $103,947
App Developer 30.4% $100,857
Information Security Analyst 27.2% $95,506
Physical Therapist 27.1% $85,694
Marketing Research Analyst 24.4% $62,828
Health Services Manager 21.0% $96,517
Financial Manager 19.1% $122,733
Computer Systems Manager 14.4% $138,142
Physician 13.7% $200,774
All Jobs 7%* $37,040*
Source: Kiplinger. https://www.kiplinger.com/slideshow/business/T012-S001-best-jobs-for-the-future-2018/index.html
*Source: Bureau of Labor Statistics 2016-26. https://www.bls.gov/careeroutlook/2017/article/occupational-projections-charts.htm#Chart%201
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In every case: The sooner you start, the less it will cost
The benefits of starting to save early
Assumes your Beneficiary will attend a public in-state university in 18 years, costing $222,466
Source: SavingforCollege.com. The Price of Procrastination Calculator. Assumes a hypothetical 5% rate of education inflation over 18 years. Your monthly contribute
assumes a hypothetical investment growth of 6% assuming no additional contributions or withdrawals and all earnings are reinvested. Your investment will vary and may
perform better or worse than these examples which are for illustrative purposes only and do not represent any specific investment.
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MI 529 Advisor Plan
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Commonly Used Vehicles to Save for College
Comparison of
529 College Coverdell Education
college-savings UTMA/UGMA Account
Savings Plans Savings Account
investment-option benefits
Each MI 529 Advisor Plan account is subject to a service fee, state administrative fee, program management fee, underlying fund fees and a sales charge.
1. Some state plans do have their own age and/or time limits.
2. Withdrawals that are not used for qualified higher education expenses may be taxed as ordinary income and may be subject to a 10% additional penalty tax.
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Federal Income Tax-Free Growth?
Coverdell
529 College UGMA/ Education
Savings Plan UTMA Savings
Account
Yes. Money grows No. Earnings are Yes. Money grows income
income tax free and taxed at the tax free and qualified
qualified distributions are parent’s or the distributions
income tax free minor’s rate are income tax free
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Who Controls Assets?
Coverdell
529 College UGMA/ Education
Savings Plan UTMA Savings
Account
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Why 529 plans move to the head of the class
The benefits of tax-free growth
Accelerate
your savings with
tax-free growth
potential!
*Chart does not represent the past performance of any Nuveen Fund. For fund performance visit
nuveen.com.
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MI 529 Advisor Plan
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Quick look: 529 College Savings Plans
Funds pay for college and related qualified higher education expenses
Pays tuition at thousands of higher education institutions, in the U.S. and abroad²
¹Although contributions are not deductible, earnings in a 529 plan grow federal tax-free and will not be taxed when the money is taken out to pay for college. As of January 1, 2018, tax-free
withdrawals may also include up to $10,000 in tuition expenses for private, public or religious elementary and secondary schools (per year, per beneficiary).
²Funds can be used at 529 eligible institutions, which includes any college, university, vocational school, or other post-secondary institute recognized by the Department of Education.
³Must be a U.S. citizen/resident alien, corporation, entity & trusts with valid tax ID numbers
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With almost no limitations on account owners or beneficiaries.
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529 Plan assets pay for…
Qualified Higher Education Expenses (QHEE)
At…
K-12 tuition expenses up to $10,000 per year
Tuition School Fees
Colleges and Universities
Graduate schools
Student loans up to $10,000 per beneficiary
Qualified Trade schools
Books Supplies
Expenses
(physical and eBooks) Private or public institutions
In- or out-of-state, including many abroad
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10 Reasons to Consider the MI 529 Advisor Plan
① No annual maintenance fee*
② No income restrictions
③ Account Owner controls the assets
④ Wide investment manager selection
⑤ Broad investment diversification¹
⑥ Sophisticated glide path design within the age-based investment portfolio option
⑦ High contribution limits at $500,000 per beneficiary
⑧ Low contribution requirement (starting at $25 per investment portfolio or $15 per pay period for payroll
deduction option)
⑨ Contributions receive favorable gifting and estate tax treatment²
⑩ Advisor expertise and oversight
*Other fees apply. ¹Diversification does not assure a profit or guarantee against loss. ²refer to page 20
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“Great Lakes State” bonus points
*Refer to page 20
This material is provided for informational purposes only and is not to be construed as tax, legal or investment advice. Michigan and federal tax rules may change in the future and tax benefits are conditioned
on meeting certain requirements. For non-qualified withdrawals, earnings are subject to income taxes and may be subject to additional tax penalties. Please consult your tax professional.
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More MI 529 Advisor “smart numbers”
Estate Benefits 5 Years (at once) Annual Tax Exclusion
Annual Gifting:
Date Tax Year Type Amount Amount
$15,000 for individuals (individual) (Married)
$30,000 for married couples.
Today 2021-2025 Current Year $75,000 $150,000
5-in-1 Super-Funding: 2021 Accelerated Year $15,000 $30,000
Up to $75,000 per
individual/per beneficiary 2022 Accelerated Year $15,000 $30,000
Up to $150,000 per married 2023 Accelerated Year $15,000 $30,000
couple per beneficiary
2024 Accelerated Year $15,000 $30,000
One-year investment is treated same a
5-year period, free of federal gift tax, so long as
no other contributions are made to the same
2025 Accelerated Year $15,000 $30,000
beneficiary in that 5-year period.*
*Contributions are generally considered completed gifts for federal transfer tax purposes and are, therefore, potentially subject to federal gift tax. Generally, if a contributor’s
contributions to Accounts for a Designated Beneficiary, together with all other gifts by the contributor to the Designated Beneficiary, do not exceed the “annual exclusion” amount
of $15,000 per year (or $30,000 for a married couple), no federal gift tax will be imposed on the contributor for gifts to the Designated Beneficiary during that year.
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MI 529 Advisor Plan
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Nuveen and TIAA Tuition Financing, Inc.
TIAA-CREF Tuition Financing, Inc. (TFI) was one of the first program managers to enter the
529 college savings plan market, and is one of the top program managers in the industry.
TFI administers 8 state plans totaling over $34 billion in assets across nearly 1.4 million accounts as of 31 Dec 2020.
Over 20 years experience in dedicated 529 program management.
Committed to ensuring all families have opportunity and access to higher education.
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An array of flexible investment options…
20 Investment Portfolios:
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Enrollment Year Investment Portfolios: Set-it-and-forget-it
Portfolios adjust allocations automatically over time based on a manager’s “Glide Path”
100.00%
90.00%
80.00%
70.00%
60.00%
Capital preservation
Real assets
50.00% Real estate
Fixed income
40.00% Equities
2030 / 2031
2028 / 2029
2024 / 2025
2038 / 2039
2036 / 2037
2034 / 2035
2032 / 2033
2026 / 2027
2022 / 2023
30.00%
In School
In School
20.00%
10.00%
0.00%
18+ 16-17 14-15 12-13 10-11 8-9 6-7 4-5 2-3 0
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Target-Risk Portfolios: Pick your spot
Static, target-risk portfolios offer diversified investment solutions based on your risk
tolerance
Allocations of target-risk portfolios Target risk conservative allocation Target risk capital appreciation
12.9%
1.05% 3.00%
A broad range of asset 1.05% 17.0
0%
classes provide greater
diversification
Risk based options provide 5.6%
21.25%
easy levers to
increase/decrease risk levels 60.00%
68.8
5.6% 0%
Often used with age-based
portfolios to increase or Equities Real Estate Real Assets
3.75% Equities Real Estate Real Assets
decrease risk exposure Bonds Inflation-Linked Bonds Funding Agreement Bonds Inflation-Linked Bonds
CONSERVATIVE AGGRESSIVE
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Multi-Fund Portfolio: All-in-one alternative
The Alternative Income Portfolio
This portfolios seeks to provide a moderate to favorable long-term total return by investing in multiple mutual funds
that invest across the capital structure of a wide range of companies as well as in fixed income sectors.
Nuveen Alternative
Income Portfolio
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Individual Portfolios: Create your own strategy
Morningstar Fund
Asset Class Investment Portfolio Underlying Fund
Category
Menu provides diverse high TIAA Large Cap U.S. Equity Index Portfolio TIAA-CREF S&P 500 Index Fund Large Blend
quality options across Santa Barbara Dividend Growth Portfolio Nuveen Santa Barbara Dividend Growth Fund Large Blend
major asset categories and
TIAA Large Cap Value Portfolio TIAA-CREF Large Cap Value Fund Large Value
sub-asset classes U.S. equity
Harbor Capital Appreciation Portfolio Harbor Capital Appreciation Fund Large Growth
Investment options include Ariel Portfolio Ariel Fund Mid Cap Value
strategies from proprietary
and third party providers for TIAA U.S. Small Cap Portfolio TIAA-CREF Small Cap Fund Small Growth
the asset classes Harding Loevner Global Equity Portfolio Harding Loevner Global Equity Fund World Large Stock
Non-U.S. equity Oakmark International Portfolio Oakmark International Fund Foreign Large Blend
Many individual portfolios
invest in highly rated DFA Emerging Markets Portfolio DFA Emerging Markets Core Equity Portfolio Diversified Emerging Markets
mutual funds by MetWest Total Return Bond Portfolio MetWest Total Return Bond Fund Intermediate-Term Bond
Morningstar
Fixed income Nuveen Strategic Income Portfolio Nuveen Strategic Income Fund Multisector Bond
Can be used as a Nuveen Inflation-Linked Portfolio Nuveen Inflation-Protected Securities Fund Inflation-Protected Bond
compliment to age-based, TIAA Social Choice Equity Portfolio TIAA-CREF Social Choice Equity Fund Large Blend
target risk and multi-fund Social choice
options TIAA Social Choice Bond Portfolio TIAA-CREF Core Impact Bond Fund Intermediate-Term Bond
Real assets Nuveen Real Asset Income Portfolio Nuveen Real Asset Income Fund World Allocation
Capital preservation Principal Plus Interest Portfolio TIAA Life Funding Agreement N/A
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MI 529 Advisor Plan
501: Extra Credit with Financial Aid
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How Americans pay for college
More than half of families relied on
borrowing in 2019...
…and student loan debt has soared
Source: SallieMae, “How America Pays for College 2019” showing planners only Source: https://studentloanhero.com/student-loan-debt-statistics/Data via federalreserve.gov,
newyorkfed.org and clevelandfed.org
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The “1-2-3 Approach” to smart (cheaper) borrowing
1 2
Start with money
you WON’T have
to pay back
3 Take advantage of
federal student loans
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Borrow Wisely
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Loans > Must pay back (with interest)
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File your FAFSA (Free Application For Federal Student Aid)!
What to know:
Apply October 1, the year before classes begin
Apply each year you seek aid
Apply even if you think you can’t qualify
How to access:
Fill out the online form: https://fafsa.ed.gov/
Download a hard copy form: https://fafsa.ed.gov/
Call: 1.800.4.FED.AID
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Don’t miss your “due dates”
Important!
The college deadline
The state deadline
The federal deadline
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After FAFSA SAR (Student Aid Report)
COA
(Cost of Attendance)
–
EFC
(Expected Family
Contribution)
Financial Need
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Two (of many) reasons to use a 529 college savings plan:
① Tax-free growth…plus,
② Savings is always cheaper than borrowing
529 Savings Estimated EFC Amount
$0 $17,504
Difference of $1,120 in
$10,000 $17,810 EFC when saving
$25,000 $18,660 $25,000 in a 529 Plan.
$50,000 $20,070
$100,000 $22,890
Assumptions: State of Michigan Residents only. This is provided for educational purposes only and is not meant as legal, tax, estate planning or investment advice. You should review your
overall tax plan with a tax professional. The results of these calculations are estimates based on the assumptions of the calculator program via savingforcollege.com/financial-aid-
calculator. In addition, the inputs that were used assume a married couple with an adjusted gross income (AGI) of $100,000 and non-retirement assets of $15,000. It also assumes a
family of four, the age of the oldest spouse is 48 and the child has no assets to their name.
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The golden rule: always do your homework!
collegeboard.org
edvisors.com
finaid.org
fastweb.com
fafsa.ed.gov
fafsa4caster.ed.gov
salliemae.com
savingforcollege.com
studentaid.ed.gov
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MI 529 Advisor Plan
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POP Quiz…
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Take Action Today: College Savings in 3 Easy Steps
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Questions
& Answers
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Thank You
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Important Disclosures
MI 529 Advisor Plan is offered by the State of Michigan. TIAA-CREF Tuition Financing, Inc. is
the Program Manager and Nuveen Securities, LLC is the Distributor.
RISK CONSIDERATIONS
There are various risks associated with an investment in the MI 529 Advisor Plan; principal
loss is possible. Each529 Investment Portfolio is also subject to the risks of the underlying
fund(s) in which it invests. To fully understand the investment policies and risks of the
underlying fund(s), please refer to the current prospectuses for the Underlying Funds which
can be obtained on the MI 529 Advisor Plan website.
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Important Disclosures Contd.
The Enrollment-Based Investment Portfolio is currently divided into ten target Enrollment Year
Investment Portfolios that invest in multiple mutual funds, each of which has a different
investment strategy. The further out the enrollment year, typically for younger Designated
Beneficiaries, the investment will seek a favorable long-term return by investing primarily in
mutual funds that invest primarily in equity securities, which typically have a higher level of
risk, but may have greater potential for returns than mutual funds that invest primarily in debt
securities.
The Target Risk Portfolios are currently comprised of two Investment Portfolios. The Target
Risk Portfolios are designed for Account Owners who prefer a diversified Investment Portfolio
with a fixed risk level rather than a risk level that changes as the Designated Beneficiary ages.
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Important Disclosures Contd.
Before investing, carefully consider the investment objectives, risks, charges and
expenses of the MI 529 Advisor Plan, including whether the investor's or the Designated
Beneficiary's home state offers any state tax or other benefits that are only available for
investment in such state's qualified tuition program. Other state benefits may include
financial aid, scholarship funds, and protection from creditors. For this and other
information that should be read carefully, please request a Plan Description at 866-529-
8818 or visit MI529advisor.com.
Participation in the MI Advisor Plan does not guarantee that the account’s assets will be
adequate to cover future tuition or other higher education expenses, or that a Designated
Beneficiary will be admitted to or permitted to continue to attend an institution of higher
education. Contributions to an Account and the investment earnings if any, are not guaranteed
FPP-1623309CR-E0621X
or insured by the State of Michigan, The Michigan Department of the Treasury, the State
Treasurer of Michigan, the Michigan Education Savings Program the Federal Deposit
Insurance Corporation, any other government agency or entity or any of the service providers
to the Michigan Education Savings Program, including, but not limited to, TIAA-CREF Tuition
Financing, Inc. and Nuveen Securities, LLC.