ABLE to Invest: Moderate Growth Portfolio

This article is part of a series on the ABLEnow investment options. It’s intended to help you maximize the advantages of your ABLEnow account by removing some of the guesswork from investment decisions. The information should not be considered investment or financial advice.

An ABLEnow account is a smart way to save. But contributing is only the first step. You should also consider investing the money to align with your financial goals.

Remember, your ABLEnow account is not an investment in itself — it’s an account that holds your savings and investments, with unique advantages for individuals with disabilities.

Investing is a smart way to put your money to work for you. Earnings on your ABLEnow investments can compound tax-free, which offers the potential for significant growth over the long-term.

Select Investments

The first $2,000 in your ABLEnow account is automatically allocated to the FDIC-insured ABLEnow Deposit Account, which is linked to your ABLEnow Card. Once the balance in the ABLEnow Deposit Account exceeds $2,000 (or a higher amount set by the Account Owner or Authorized Representative), you may invest additional contributions into one or more investment portfolios.

Select your investments in the ABLEnow online portal. Click “Accounts” in the top navigation bar. Then follow the step-by-step “Investment Account Setup” instructions.

Target-Risk Portfolios

ABLEnow offers several target-risk portfolios. This specific type of mutual fund holds a diversified mix of stocks, bonds and other investments. It’s professionally managed to maintain a certain risk level over time.

One of the target-risk portfolio options available to ABLEnow customers is the Moderate Growth Portfolio.

Spotlight: Moderate Growth Portfolio

A moderate growth portfolio provides long-term growth of capital and a low to moderate level of income, through interest and dividends, on underlying investments. Sometimes described as a “balanced” strategy, these portfolios employ a static allocation to both stock and bonds. Investors with a long-term time horizon who can accept some stock market volatility may want to consider this fund.

The ABLEnow Moderate Growth Portfolio invests entirely in the Vanguard LifeStrategy Moderate Growth Fund. The fund holds 60% of its assets in stocks (36% U.S. stocks, 24% international stocks), and 40% in bonds (28% U.S. stocks, 12% international stocks).

It’s good practice to periodically review your investments to make sure they are still in line with your needs. It’s also important to understand costs. The ABLEnow Moderate Growth Portfolio has an asset-based fee of 0.38%. This means you’ll pay an annual fee of about 38 cents for every $100 you’ve invested in the fund. Review the ABLEnow Program Description for more details.

Key Takeaways

Consider investing the money in your ABLEnow account.
Earnings on your ABLEnow investments can compound tax-free, which offers the potential for significant growth over the long-term.
One target-risk investment option is the ABLEnow Moderate Growth Portfolio. It maintains a target asset allocation of 60% equity, 40% fixed income.
Periodically review your investments to make sure they are still in line with your needs.

Updated August 2023

All investing is subject to risk, including the possible loss of the money you invest. Fluctuations in the financial markets and other factors may cause declines in the value of your account. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you growth and earnings.

ABLEnow cannot and will not provide legal, financial, or tax advice, and nothing herein or in any other written materials shall be construed as such.