Saving and investment options
Choosing your investment option
We know everyone’s approach to choosing investments may not be the same. Your investment decisions can differ from other program savers or throughout your lifetime based on your unique circumstances, financial constraints, timelines, and overall savings goals. Some examples of investment goals and selections are listed below.*
Goal: Save money for the long term
Investment option: You might consider any of the available options
Why: There are portfolios designed for a variety of goals and risk tolerance levels
Goal: Use funds to pay for qualified expenses throughout the year
Investment option: FDIC-Insured Portfolio
Why: This option is like cash and limits worry about short-term market changes when making frequent withdrawals
Goal: Saving for both long-term and paying for qualified expenses
Investment option: Spread savings among several portfolios
Why: Account owners can select how much money they contribute to each portfolio, making sure there are enough funds available for frequent withdrawals as well as put toward achieving your future savings goals
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.
Please note: Before investing, carefully consider the Plan's investment objectives, risks, fees, and expenses. This information and more about the Plan may be found in the CalABLE Account Plan Disclosure Booklet, which should be read fully and carefully before investing. The investment option descriptions contained on this website are provided for informational purposes only and do not constitute financial, investment, or other advice. Beneficiaries or their Authorized Legal Representatives are solely responsible for deciding which investment options to use.
CalABLE offers a total of eight savings and investment options
- Income Portfolio
- Conservative Portfolio
- Income and Growth Portfolio
- Balanced Portfolio
- Conservative Growth Portfolio
- Moderate Growth Portfolio
- Growth Portfolio
- FDIC Account Portfolio
Income Portfolio
The Income Portfolio seeks to provide investors limited capital appreciation with minimal risk to principal. The Portfolio is designed for investors with a very low tolerance for short-term market fluctuations who want low risk to principal and have a high desire for current income with limited capital appreciation. The Portfolio investments include a mix of fixed income investments with a significant cash (Money Market Fund) position.
Conservative Portfolio
The Portfolios included in the Conservative Investment Option are designed for investors with a low tolerance for short-term market fluctuations who expect modest capital appreciation with limited risk to principal.
Income and Growth Portfolio
The Income and Growth Portfolio seeks to conservatively grow the Portfolio with modest income at higher risk. The Portfolio is designed for investors with a moderate tolerance for short-term market fluctuations who expect moderate capital appreciation and have a modest desire for income. The Portfolio investments include exposure to a mix of bonds with a blend of globally diversified equity securities.
Balanced Portfolio
The Balanced Portfolio seeks to provide a balanced mix of steady return and growth but comes with additional risk. The Portfolio is designed for investors with a modest tolerance for short-term market fluctuations and a desire for income and moderate capital appreciation. The Portfolio investments include a balanced mix of bonds and globally diversified equity securities.
Conservative Growth Portfolio
The Conservative Growth Portfolio seeks to grow the Portfolio moderately with low income but comes with increasing degree of risk. The Portfolio is designed for investors with a moderately high tolerance for short-term market fluctuations who expect significant capital appreciation and have a minimal desire for current income. The Portfolio investments include a blend of globally diversified equity securities with exposure to a mix of bonds.
Moderate Growth Portfolio
The Moderate Growth Portfolio seeks capital appreciation but comes with a high degree of risk. The Portfolio is designed for investors with a high tolerance for short-term equity market fluctuations who expect capital appreciation and have low desire for income. The Portfolio investments are generally a blend of globally diversified equity securities.
Growth Portfolio
The Growth Portfolio seeks to maximize growth but comes with the highest degree of risk. The Portfolio is designed for investors with a very high tolerance for short-term equity market fluctuations who expect maximum capital appreciation and have no desire for income. The Portfolio investments are generally a blend of globally diversified equity securities.
FDIC Account Portfolio
The FDIC account offers insurance protection for amounts contributed to the Cash Option, up to FDIC-permitted limits. The Cash Option allocates 100% of its assets to a demand deposit account established by the Trust at the Bank (the “Bank Account”).
| Percent Allocation of Investment Option | ||||||||
|---|---|---|---|---|---|---|---|---|
Income Portfolio |
Conservative Portfolio |
Income and Growth Portfolio |
Balanced Portfolio |
Conservative Growth Portfolio |
Moderate Growth Portfolio |
Growth Portfolio |
||
| Fund Name | Ticker | |||||||
| Fidelity® Total Market Index Fund | FSKAX | 0% | 7% | 13% | 17% | 20% | 26% | 33% |
| Schwab Total Stock Market Index Fund® | SWTSX | 0% | 6% | 13% | 16% | 19% | 26% | 32% |
| Fidelity® International Index Fund | FSPSX | 0% | 5% | 10% | 12% | 15% | 20% | 25% |
| Fidelity® Emerging Markets Index Fund | FPADX | 0% | 2% | 4% | 5% | 6% | 8% | 10% |
| Fidelity® U.S. Bond Index Fund | FXNAX | 30% | 30% | 25% | 22% | 17% | 9% | 0% |
| Schwab U.S. Aggregate Bond Index Fund | SWAGX | 30% | 30% | 25% | 20% | 17% | 8% | 0% |
| Fidelity® Long-Term Treasury Bond Index Fund | FNBGX | 5% | 5% | 4% | 4% | 4% | 3% | 0% |
| Schwab Treasury Inflation Protected Securities Index Fund | SWRSX | 3% | 3% | 2% | 2% | 2% | 0% | 0% |
| Vanguard Emerging Markets Bond Fund Admiral Shares | VEGBX | 6% | 6% | 2% | 1% | 0% | 0% | 0% |
| Vanguard High-Yield Corporate Fund Admiral Shares | VWEAX | 6% | 6% | 2% | 1% | 0% | 0% | 0% |
| Vanguard Cash Reserves Federal Money Market Fund Admiral Shares | VMRXX | 20% | 0% | 0% | 0% | 0% | 0% | 0% |
Fees and expenses
There’s a low annual fee of $30 for each CalABLE account to cover the program’s operating expenses. There are also low fees on the underlying mutual funds, which are part of each of the investment options, and a state administrative fee. These fees will generally total between 0.28% and 0.45% of the account’s balance per year. Additional fees are applied to your account if you opt out of electronic statements or request a withdrawal check, instead of doing everything online. You can learn more about the program fees in the Program Disclosure Booklet or our Fees FAQ.
