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For more information about the AFCSP, call 1.800.888.2723 or visit                                                        ...
Saving for their future today can make             all the difference for tomorrow.As the costs of college continually ris...
Unique & secure deposit options to ensure the  path to college education is well planned.with the AFCSP, you and your fami...
Every road brings with it new possibilities.       Let the AFCSP lead the way.        Selecting the right college savings ...
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  1. 1. For more information about the AFCSP, call 1.800.888.2723 or visit to obtain a Disclosure Statement that Contact and service discusses investment objectives, risks, charges, expenses, and AFCSP other important information; read and consider it carefully before College Savings Bank investing. If you are not an Arizona taxpayer, consider before investing whether your or the beneficiary’s home state offers any P.O. Box 3769 “ Princeton, NJ 08543 state tax or other benefits that are only available for investments in such state’s qualified tuition program. In addition, you should periodically assess, and if appropriate, adjust your Section 529“ Client service Plan investment choices with your time horizon, risk tolerance, and When you reach the top, keep climbing. 1.800.888.2723 9 a.m. to 6 p.m. Eastern time investment objectives in mind. UNkNOwN The AFCSP is sponsored by the State of Arizona and administered by the Arizona Commission for Postsecondary Education (ACPE). College Savings Bank serves as a Program Manager for the AFCSP.Mail College Savings Bank, as a Program Manager, supports all aspectsIf you prefer, you can complete the enclosed Enrollment Form and of the day-to-day operations of the AFCSP, including marketing,return it with your initial contribution as follows: recordkeeping and administrative support. The AFCSP offers College Savings Bank issued CDs and a savings account. CDs may be subjectM a i l to: fo r ov er n i g h t M a i l : to early withdrawal penalties. Generally, contributions to and earningsAFCSP AFCSP on investments in the AFCSP are insured by the FDIC on a pass-through c/o College Savings Bank basis to each account owner, in the same right and capacity, up to thec/o College Savings Bank maximum amount set by federal law, currently $250,000. Under the FDICPO Box 3769 5 Vaughn Drive, Suite 100 regulations, accounts that have the same owner and the same designatedPrinceton, NJ 08543 Princeton, NJ 08540 beneficiary will be combined for purposes of the $250,000 limitation. Tax and other penalties may apply to non-qualified withdrawals from aM a k e c h ec ks a n d el ect r o n i c t r a n s fer s AFCSP account. You should consult your financial, tax, or other adviserpaya b l e to: AFCSP, CSB as Manager to learn how state-based benefits (or limitations) will apply to your specific circumstances. The AFCSP is not insured by the State of Arizona,Online nor is the principal and interest invested in the plan thereon guaranteed by the State of Arizona.Online enrollment makes getting started even more convenient.Visit us at to getstarted today.Questions?If you should need further assistance, contact a Client ServiceRepresentative toll-free at 1.800.888.2723, Monday through The path to success starts withFriday, 9 a.m. to 6 p.m. Eastern time.You can also email questions or comments to arizona@ a secure college savings © 2012 Arizona Family College Savings Program. © 2012 College Savings Bank. Member FDIC. All rights reserved. InvestorSure and CollegeSure are registered trademarks of College Savings Bank. S&P 500 is a registered trademark of The McGraw-Hill Companies, Inc. All other trademarks, service The Arizona Family College Savings Program Getting Started is Easy! marks or registered trademarks are the property of their respective owners. Offered by the ArizOnA COmmissiOn fOr POstseCOndAry eduCAtiOn mAnAged by COllege sAvings bAnk AZBP4000
  2. 2. Saving for their future today can make all the difference for tomorrow.As the costs of college continually rise, it’s important to be prepared andprotect your child’s college savings.Today’s workforce is becoming increasingly competitive Let the AFCSP make saving easieras more individuals earn advanced degrees. Now— Economic conditions continually fluctuate, but one thingmore than ever—ensuring that you are prepared for the remains constant—the rise of college costs.future higher education of your child could not be moreimportant. A college education is an investment that will • Over the previous 50 years college costs havereap rewards for years to come. increased by an average of 6.47% a year—nearly double that of general inflation.Did you know? • For the 2011–2012 academic year, the annual college• In 2010, full-time employees age 25 and over had inflation rate was 4.36%. median weekly earnings of $1,138 for those holding at • with few exceptions, college inflation has steadily risen least a bachelor’s degree, compared to $629 for high school graduates with no college education. over the last ten years. Life is full of twists and turns.• Over a 40–year career the difference in earnings can There is no better time to start investing in a 529 plan. You can open an account for as little as $25. Our FDIC- By securing your child’s college education now, be as much as $1 million between a high school graduate and a college graduate. insured CD Options can fit any investor’s needs. whether your child is three years away from college or ten years, you can have peace of mind for the future.• Those who complete higher education have more the AFCSP has a principal protected CD option that can opportunities to enter into occupations yielding higher be right for you. Enroll online, by mail, or over the phone. Offering more than just secure savings options, the AFCSP also allows you returns in earnings. to enjoy great tax advantages while saving for a future college education. Private College (with Private College Public College (with Public College ivy league (with Any U.S. citizen, regardless of income, may establish a when you save for your loved one’s college education year room and board) (tuition only) room and board) (tuition only) room and board) tax-favored account for any individual. with the AFCSP, you can enjoy great tax advantages. 2007–2008 $35,272 $26,512 $13,558 $6,191 $45,853 • Use the proceeds toward the costs of nearly any public • Earnings grow federal and Arizona state tax-free and 2008–2009 $37,208 $28,042 $14,364 $6,591 $47,626 or private, two-year or four-year college in the U.S. or distributions to pay qualified education expenses are 2009–2010 $38,799 $29,247 $15,212 $7,050 $49,443 abroad, as long as the student is enrolled in an eligible also federal and Arizona state tax-free. 2010–2011 $40,408 $30,404 $16,140 $7,605 $51,562 U.S.-accredited college, university or technical school. • Arizona Residents are entitled to a $750 deduction to 2011-2012 $42,168 $31,710 $18,975 $8,391 $53,806 • An account owner can control assets and determine gross income per taxpayer, or $1,500 for those married,Source: Public college costs and percentage increases are derived from ‘Trends in College Pricing’ ©2010 The College Board (available at trends. how they are used. filing jointly based on contributions to any college Private college costs and percentage increases are based on the Independent College 500 Index ©2010 The College Board(available at General inflation figure based on the Consumer Price Index produced by the Bureau of Labor Statistics, including the AFCSP. • High contribution limits: The current maximumunadjusted 12 months ending June 30, 2001–2010. contribution limit is $340,000. • Participants also benefit through tax-free gifting. Eligible college expenses include tuition, fees, textbooks, • If your child decides not to attend college, you may supplies and certain equipment required to attend an transfer the account to a member of the family of the eligible institution. If the student’s enrollment qualifies beneficiary without incurring taxes or penalties. for at least half time, room and board expenses are also eligible up to a specified level.4 the arizona family college savings program | 1.800.888.2723 1
  3. 3. Unique & secure deposit options to ensure the path to college education is well planned.with the AFCSP, you and your family will be able to rest easy knowing the InvestorSure® CDfunds you put aside for your loved one’s future will be safe. Losing principal in the stock market is a real risk, but not with the InvestorSure CD. • Unlike many investments, the InvestorSure CD does not risk principal when held to maturity. It is indexed to the StandardCollegeSure CD ® & Poor’s® 500 Composite Stock Index (S&P 500®).with a 23 year history, the CollegeSure CD has a proven track record of helping families, like yours, save for future higher • Should the value of the S&P 500 decline over the investment period, you will receive your full investment back at costs. Funds held to maturity will also receive a percentage of the average increase in the S&P 500 based upon a specific formula.• The CollegeSure CD is a variable rate CD indexed to college costs. It pays an annual percentage yield tied to the rise • InvestorSure CDs will pay, based on a specific formula, 70% of the increase in the S&P 500 at maturity as determined in college costs as measured by the Independent College 500 IC 500® Index (IC 500). by averaging the closing value of the S&P 500 over the 20 quarterly observations throughout the term of the CD. The• The CollegeSure CD provides safety and flexibility. Maturities range from 1 to 22 years and each CollegeSure CD is averaging further protects your investment from wide swings in the S&P 500 as your investment approaches maturity. FDIC-insured up to $250,000 per depositor, so your principal is protected. investorsure Cd: 20-year, 10-year and 5-year historical rates of return***• The chart below illustrates how an initial investment of $1,000.00 over a 5-year term will yield a greater return when invested in the CollegeSure CD as compared to an average National Fixed Rate CD. issue date 11/86-8/06 11/96-8/06 11/01-8/06 maturity date 11/91-8/11 11/01-8/11 11/06-8/11Average fixed rate Cd Compared to the Collegesure Cd (Assuming a 5-year term and $1,000.00 initial deposit) number of Cds 80 40 20 Average national fixed rate* Collegesure Cd** Average APy 3.65% 1.76% 1.74% Projected College taxable equivalent earnings**** 5.07% 2.45% 2.41%date balance APy balance APy Inflation8/1/11 $1,000.00 $1,000.00 4.36% Fixed Rate CDs8/1/12 $1,012.60 1.26% $1,016.50 2.11% 4.58% Fixed Rate CDs are a convenient way to save for a college education while earning competitive rates.8/1/13 $1,025.36 1.26% $1,038.35 2.33% 4.81% • Fixed Rate CDs are a dependable investment option, with maturity options of both 1- and 3-year.8/1/14 $1,038.28 1.26% $1,065.87 2.56% 5.05% • Each Fixed Rate CD provides the safety of FDIC insurance while earning a fixed rate of return for the entire term of the CD.8/1/15 $1,051.36 1.26% $1,099.45 2.80% 5.30% • Your rate of return is determined when the CD is opened, so you will be able to calculate the exact value of your account8/1/16 $1,064.61 1.26% $1,139.58 3.05% 5.56% at maturity. Average College total return Average APy total return Average APy Inflation fixed rate Cd interest rate 3-year history***** $64.61 1.26% $135.16 2.46% 5.15% 2009 2010 2011* National fixed rate CD statistics provided by Federal Deposit Insurance Corporation (FDIC) weekly National Rates and Rate Caps: College savings bank 1-year 1.25% 0.63% 0.39% as of 10/31/11. treasury 1-year 0.47% 0.32% 0.17%** CollegeSure CD interest rate is based on an issue margin of 2.25% for a 5-year CollegeSure CD and interest rate cap of 5.11%, as of 10/31/11. Projected college inflation assumes a 5% increase each year since 2011. College savings bank 3-year 2.46% 1.85% 1.13% treasury 3-year 1.43% 1.16% 0.80% *** The InvestorSure CD was introduced to the market on February 1, 2008. Historical analysis is purely hypothetical and applies the current product upside payment formula to a period of time in which the product was not available. **** Taxable equivalent analysis assumes the investor is within the 28% federal income tax bracket. ***** Reflects the daily average rates for each CD maturity.2 the arizona family college savings program | 1.800.888.2723 3
  4. 4. Every road brings with it new possibilities. Let the AFCSP lead the way. Selecting the right college savings option is an important decision for the future of your ‘loved ones’. Unlike retirement savings, funding a college education has a relatively short time horizon and may warrant a more conservative investment strategy geared toward protecting assets for the future. All of the savings options featured in this enrollment package include principal protection and the security of FDIC insurance up to the maximum allowable limit—currently $250,000 per depositor held in the same right and capacity. The Arizona Family College Savings Program (“AFCSP”) is designed for parents and grandparents who are not comfortable risking their investment—their child’s college savings fund. Launched in 1999, the AFCSP is designed to help families meet the rising costs of a higher education through a well- contracted line-up of FDIC-insured certificates of deposit. College Savings Bank, a Program Manager, is the largest 529 plan provider focused exclusively on FDIC-insured deposits. They are the safety-first company; stable, secure, consistent, solid and proof positive that strong and steady lasts the race. Selecting the right college savings option is a very important decision—it’s time to consider a savings option that you can be sure about. “ “ Set your goals high, and don’t stop ‘till you get there BO JACkSON