Investment Options and the underlying funds have been specifically selected to offer a low-expense, multi-manager plan, made up of respected investment managers that are reflective of differing styles and a wider range of asset classes. The NEST Direct Plan offers:
- Eight investment families with well-respected investment managers;
- One Treasury Inflation-Protected Securities (TIPS) investment, seven indexed funds, two ETFs, 6 actively managed funds; and
- One FDIC-insured individual investment option
Please note that changes to existing investments within the 529 plan can be made only once per calendar year and the MyPlanIQ portfolios for 529 plans are following the same rule. MyPlanIQ.com provides asset allocation strategies based on the given individual investment options to constructs your 529 portfolios, which is better tailored to their risk profile.
For further information, please visit the plan's official website.
Investment options of Nebraska's 529 Direct College Savings Plan
Total Available Funds: 17
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Investment model portfolios
We provide two types of investment model portfolios for Nebraska's 529 Direct College Savings Plan participants. You can customize and follow a model portfolio in your plan account.
Types of portfolio strategies
- Strategic asset allocation portfolio: It invests in a diversified portfolio of multiple assets, buy-and-hold without frequently changing the asset allocation weights.
- Suitable: For long-term (more than 15 years, preferably more than 20 years), want to be tax efficient and can withstand interim drawdown or loss as high as 50% or more.
- Pros:
- Less error-prone
- Infrequent rebalancing or transactions
- Tax efficient for taxable brokerage investments
- Cons:
- Interim loss or drawdown can be substantial
- Possible low returns for an extended period, such as 10 years or longer
- Tactical asset allocation portfolio: it invests in a diversified portfolio of multiple assets, dynamically adjust stock and bond allocations to minimize losses during market stress.
- Suitable: For long-term (more than 10 years or preferably longer) capital. Investors are willing to rebalance as frequent as monthly.
- Pros:
- Reduce large interim loss or drawdown
- Less sensitive to investment entry point
- Likely to improve returns
- Cons
- Demand more frequent rebalancing or transactions
- Less tax efficient — more suitable in a tax-deferred account such as 401(k) or IRA
- Can experience a period of lower returns compared to a broad-based strategic allocation or a buy-and-hold benchmark, especially in some bull markets
These portfolios are proactively monitored and rebalanced on a monthly basis when needed, ensuring it remains in line with its target allocation.
Let us know (Email us) if you need help to create a custom model portfolio for your plan.