While CalABLE is designed to serve all eligible people in the disability community, we know everyone’s investment strategy may not be the same. Strategies can differ greatly based on your unique circumstances, financial constraints, timelines, and overall savings goals. Account owners looking to save money for the long term, might consider one of CalABLE’s Conservative, Moderate, or Aggressive Portfolios. Account owners planning to use funds to pay for expenses throughout the year, might choose the FDIC-Insured Portfolio. Or, if saving for both long-term and short-term expenses, choosing to spread your savings among a couple of the portfolios is also an option. You may change the way in which future contributions are invested at any time. However, you may only change your investment choices twice per calendar year once the money is in your account.
Sample Ways to Save With CalABLE*
- Sam plans to use the money he places in his account to pay for monthly expenses, so he has chosen the FDIC-Insured Portfolio.
- Jill does not plan to take a withdrawal from her account for many years and is interested in the possibility of growing her money. She is comfortable knowing that her account balance may fluctuate over time so she has chosen the Aggressive Portfolio.
- Juan, like Jill, is saving for the long-term but does not want to take as much risk as Jill so he has chosen the Conservative Portfolio.
*These hypothetical scenarios are made available to you as an educational, self-help tool and are intended to provide you with a basic guideline to help you create a savings and investment plan for your CalABLE account. It is not intended for specific advice, such as directing you to buy a specific investment portfolio. These examples should not be the sole or primary basis on which you make your investment decisions. Please review the Program Disclosure Statement (PDF) for more detailed information on CalABLE’s investment options and consider consulting a financial professional for help with your unique circumstances.↩
CalABLE offers a total of four savings and investment options.
Use this if you want a stable, conservative return by investing in a low risk, interest-bearing deposit account.
- 100% Interest-Bearing Account
Use this if you want a conservative to moderate long-term total return by investing primarily in bond funds, with smaller allocations to stock funds and a funding agreement.
- 20% Stocks
- 55% Bonds
- 25% Funding Agreement2
Use this if you want a moderate long-term total return by investing in stock funds, bond funds, and a funding agreement.
- 50% Stocks
- 45% Bonds
- 5% Funding Agreement3
Aggressive Growth Portfolio
Use this if you want aggressive growth and long-term total returns by investing primarily in stock funds.
- 80% Stocks
- 20% Bonds
There is also the flexibility to change investment allocations twice per calendar year.
1Investments in the FDIC-Insured Portfolio are insured by the FDIC up to $250,000, subject to certain restrictions. For additional information on the FDIC-Insured Portfolio, including information on FDIC insurance, please see the Program Disclosure Statement (PDF).↩
2, 3The funding agreement is an insurance product that guarantees a minimum interest rate.↩
To view performance information, click on the links below.
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