529 Investment Question

Dad_of_3
Sat, 08 Sep 2012 23:44:01 +0000

Vanguard has 3 “age based option” portfolios where they automatically tweak the mix as the child approaches or enters college.
eg. if the child is 0-5 years old,
conservative portfolio is 50% stock and 50%bonds
Moderage option is 75% stock and 25% bonds
whilethe aggressive one is 100% stock

this gradually changes with age, eg. at 16-18 years:
conservative is 0% stock, 75% bonds, and25% short term reserves
while aggressive still has 25% stock and 75% bonds

after 19, the conservative goes totally to short term reserves while the others still maintain some level of risk/reward. Even if you don’t use them, it may be useful for you to refer to the way they’ve done it as a reference.