TIAA-CREF Life may not meet its obligations under the financing agreement for financial or other reasons. The assets of this investment option are used in a financing contract of the TIAA-CREF Life Insurance Company (TIAA-CREF Life) which is a subsidiary of TIAA-CREF Tuition Financing, Inc. to KHEAA as an insurance taker. The financing agreement provides a guaranteed minimum return for the amounts allocated to it by the investment option. The effective minimum interest rate will never be less than 1% or more than 3%. The guarantee is paid by the insurance company to the policyholder and not to the account holder. In addition to the guaranteed interest rate for the policyholder, the financing agreement allows for additional interest at regular intervals by TIAA-CREF Life. The rate of any additional interest is indicated in advance for up to 12 months and is not guaranteed for future periods. The current effective annual effective rate of the guaranteed option, credited with KY Saves 529 until June 30, 2021, is 1.45%, subject to the ABILITY to pay the receivables of the life insurance company TIAA-CREF. Compare only 529 plans sold through financial advisors. Using an advisor means that you receive advice and expertise from an investment professional, but this may mean that you pay a sales fee or other fees that are used to compensate the advisor. Compare 529 plans that allow you to purchase tuition “units” that can be credited or hours.
Savings plans work in the same way as a 401K or IRA by investing your contributions in investment funds or similar investments. The plan offers several investment options to choose from. Your account will be displayed up or down depending on the performance of the selected option. Savings plans will be either Sold brokers or Direct Sold. This investment option is designed to maintain capital and achieve a stable return. You can consider it if you have a short investment horizon and are looking for a low-risk conservative investment. The guaranteed option is designed to obtain capital and a stable return . . . . Once you invest in a specific investment option, you can make contributions and earn only twice a calendar year or, when transferring funds to a MESP account for another beneficiary transferred to another investment option.