529 Investment Question

SteveMA
Sun, 09 Sep 2012 10:42:15 +0000

There is no “right” answer for this question. It comes down to risk tolerance really. The age funds are ok but not always the best options either as they are pretty set in stone. One thing with the 2008 crash was that bonds were not responding in the normal stock/bond relationship so these age funds didn’t account for that. Also, for a while, international stocks were off the charts, did your funds have any of those and if not, you missed out on some really, really nice gains. Diversity is the best way to whether most markets, but diversity in all areas, different stocks, bonds, cash, real estate, etc. It’s really best to sit down with your financial planner and look specifically at your account because even account to account, state to state, the mix is going to be different and the returns different as well.