Even brilliance needs
a thoughtful plan
New York’s 529 Advisor-Guided College
Savings Program®
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE
Why save for college?
Education is more important than ever.
A college degree can mean a lifetime of lower unemployment,
higher wages, better benefits and more career advancement.
However:
• Tuition is rising rapidly
• S
tudent loans add interest payments on top of alreadyhigh college costs
• F
inancial aid may cover fewer expenses if the
government cuts spending
• F
ederal taxes could go up and erode the value of some
college accounts
Investing vs. borrowing for college
It can cost less to invest instead of borrowing
In this example, investing over an 18-year period reduced
out-of-pocket costs by over $100,000 compared to taking
out a student loan today.
$200,000
■ Investment growth
■ Out-of-pocket cost
$167,553
$150,000
$119,143
$100,000
$50,000
0
$101,753
Out-of-pocket
savings
$65,800
College savings plan
(Over 18 years)
College loan
(Principal and interest)
Source: J.P. Morgan Asset Management. The investing illustration assumes
an initial lump sum investment of $1,000, subsequent monthly investments
of $300 thereafter for 18 years and assumes an annual investment return
of 6%. Investment losses could affect the relative tax-deferred investing
advantage. The borrowing illustration assumes an interest rate of 7.21%
and a payback period of 10 years. This hypothetical illustration is not
indicative of any specific investment and does not reflect the impact
of fees or expenses. Such costs would lower performance. Each investor
should consider his or her current and anticipated investment horizon and
income tax bracket when making an investment decision, as the illustration
may not reflect these factors.
The chart is shown for illustrative purposes only. Past performance is no
guarantee of future results.
Why a 529 college savings plan?
You have the potential to accumulate more
for college with a tax-advantaged investment
offering flexibility and control.
A 529 plan is a tax-efficient way to save for children,
grandchildren, nieces, nephews, friends — even yourself
or another adult.
Pay less in taxes, keep more for college
• Tax-deferred compounding of investment earnings
• Tax-free withdrawals for qualified higher education expenses1
• Tax-deductible contributions in several states
Open an account no matter where you live or
how much you earn
• No income or state residency restrictions
•
Covers qualified higher education expenses at all accredited
U.S. schools as well as some overseas
Keep full control for the life of your account
• Decide how assets are invested, withdrawn and spent
• Ability to change beneficiaries2
SPECIAL ESTATE PLANNING
AND GIFT TAX BENEFITS
Help reduce estate taxes while giving
children a gift that lasts a lifetime.
E arnings on non-qualified withdrawals may be subject to federal income
tax and a 10% federal penalty tax, as well as state and local income taxes.
2
To change beneficiaries without income tax consequences to the account
owner, the new beneficiary must be an eligible family member of the current
beneficiary. Please review the Advisor-Guided Plan Disclosure Booklet for details.
1
NEW YORK’S 529 ADVISOR-GUIDED COLLEGE SAVINGS PROGRAM®
Why the Advisor-Guided Plan?
C hoose the only 529 plan offering
J.P. Morgan’s full suite of investment
and college planning insights.
Inherit the thinking of J.P. Morgan
•
One of the world’s largest, most-respected financial
institutions
• More than a century of investment experience
•
Access to J.P. Morgan’s Multi-Asset Solutions for asset
allocation, glide path design and manager selection, as well
as exchange traded funds from State Street Global Advisors
Deduct Plan contributions from New York
state income taxes
Account owners who are New York taxpayers can deduct up
to $5,000 in contributions from their state taxable income
each year ($10,000 if married filing jointly).1
Contribute up to $375,000 per beneficiary
The Plan’s contribution limit is among the highest of
any 529 plan in the U.S.
THREE WAYS TO INVEST
1.Age-based portfolios are broadly diversified investments
that automatically become more conservative as college
gets closer.
2.Asset allocation portfolios hold the same diverse
investment mix over time to pursue objectives ranging
from conservative to aggressive.
3.Individual portfolios invest in a single asset class; choose
from 16 options to access specific markets or custom-build
an entire portfolio.
1
ccount owners who are New York taxpayers can deduct up to $5,000 in
A
contributions from their state income taxes each year ($10,000 if married
filing jointly). Deductions may be subject to recapture in certain circumstances,
such as rollovers to another state’s plan or non-qualified withdrawals.
Why now?
The sooner you begin investing, the more time
and potential your money has to grow through
the power of tax-deferred compounding.
Get started with low minimum investments
•
Invest as little as $1,000 per account or just $25 monthly
with an automatic investment plan (AIP)
• C ontribute by check, electronic bank transfer, AIP, payroll
direct deposit, rollovers from another 529 plan or transfers
from other education accounts
Build your account over time
•
Ugift®: Invite family and friends to make gift contributions
to your account
• U
promise® Rewards: Earn cash back for college on eligible
everyday purchases
Power of starting early and saving regularly
Monthly investments in a tax-deferred account
$250,000
■ Monthly contribution $250
■ Monthly contribution $500
$200,000
$185,434
$150,000
$101,220
$100,000
$50,000
0
$92,717
$50,610
Total accumulation
in 12 years
Total accumulation
in 18 years
Source: J.P. Morgan Asset Management. This hypothetical example illustrates the
future values of different regular monthly investments for different time periods.
Chart also assumes an annual investment return of 6%. Investment losses could
affect the relative tax-deferred investing advantage. This hypothetical illustration is
not indicative of any specific investment and does not reflect the impact of fees or
expenses. Such costs would lower performance. Each investor should consider his
or her current and anticipated investment horizon and income tax bracket when
making an investment decision, as the illustration may not reflect these factors.
A plan of regular investment cannot assure a profit or protect against a loss
in a declining market.
The chart is shown for illustrative purposes only. Past performance is no
guarantee of future results.
J.P. MORGAN ASSET MANAGEMENT
Learn more about the Advisor-Guided Plan
• Consult your financial advisor
• Visit www.ny529advisor.com
• Call 1-800-774-2108 for more information
Inherit the thinking of J.P. Morgan
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE
Before you invest, consider whether your or the beneficiary’s home
state offers any state tax or other benefits that are only available
for investments in that state’s qualified tuition program.
The Comptroller of the State of New York and the New York State Higher Education
Services Corporation are the Program Administrators and are responsible for
implementing and administering the Advisor-Guided Plan. Neither the State of New
York nor its agencies insures accounts or guarantees the principal deposited
therein or any investment returns on any amount or investment portfolio.
Ascensus Broker Dealer Services, Inc. and Ascensus Investment Advisors, LLC
serve as Program Manager and Recordkeeping and Servicing Agent, respectively,
and are responsible for day-to-day operations, including effecting transactions.
J.P. Morgan Investment Management Inc. serves as the Investment Manager.
J.P. Morgan Asset Management is the marketing name for the asset management
businesses of JPMorgan Chase & Co. JPMorgan Distribution Services, Inc. markets
and distributes the Advisor-Guided Plan. JPMorgan Distribution Services, Inc. is a
member of FINRA/SIPC.
New York’s 529 College Savings Program includes two separate 529 plans. The
Advisor-Guided Plan is sold exclusively through financial advisors who have entered
into Advisor-Guided Plan selling agreements with JPMorgan Distribution Services,
Inc. You may also participate in the Direct Plan, which is sold directly by the
Program and offers lower fees. However, the investment options available under the
Advisor-Guided Plan are not available under the Direct Plan. The fees and expenses
of the Advisor-Guided Plan include compensation to the financial advisor. Be sure to
understand the options available before making an investment decision.
For more information about New York’s 529 Advisor-Guided College
Savings Program, you may contact your financial advisor or obtain
an Advisor-Guided Plan Disclosure Booklet and Tuition Savings
Agreement at www.ny529advisor.com or by calling 1-800-774-2108.
This document includes investment objectives, risks, charges,
expenses, and other information. You should read and consider it
carefully before investing.
The Program Administrators, the Program Manager and JPMorgan Distribution
Services, Inc., and their respective affiliates do not provide legal or tax advice. This
information is provided for general educational purposes only. This is not to
be considered legal or tax advice. Investors should consult with their legal or tax
advisors for personalized assistance, including information regarding any specific
state law requirements.
Upromise is an optional service offered by Upromise, Inc., is separate from New York’s
529 Advisor-Guided College Savings Program and is not affiliated with the State of New
York. Terms and conditions apply to the Upromise service. Participating companies,
contribution levels, and terms and conditions are subject to change at any time
without notice. Transfers from Upromise to a New York’s 529 Advisor-Guided College
Savings Program account are subject to a $25 minimum.
Ugift and Upromise are registered service marks of Ascensus Broker Dealer
Services, Inc.
March 2016
529-MINI-BRO