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Figuring out our 529 plan took me three whole afternoons
I thought setting up a college fund for our daughter would be simple, but picking the right investment portfolio in our state's plan was way harder than expected. I had to compare like ten different age-based options and figure out the risk levels for each one. Has anyone else found a good guide for picking the right 529 investments without getting a finance degree?
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laura_schmidt826mo ago
Yeah, that aggressive track for a toddler can be tempting with the long time frame. In my reading though, even the age-based "aggressive" options are still pretty mixed with bonds. If you truly want aggressive, you often have to pick a static portfolio that's 100% in stock funds. The age-based ones usually start dialing back risk way earlier than people expect, like when the kid hits 10 or 12.
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miles_hall6mo ago
Tell me about it, the age-based options all sound the same until you dig in. I ended up just picking the most aggressive one for my toddler since we have time. A friend sent me a simple blog post from a site called The College Investor that broke it down without the jargon.
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blair_taylor326mo ago
Check the actual fund list for the age-based option you picked. A lot of them start adding bonds when the kid is still in elementary school, which is way too early. I built my own mix with just a total stock market fund and a small cap fund to keep it simple and actually aggressive. Those target date funds are for people who want to set it and forget it, not max out growth. The College Investor has a solid guide on DIY portfolios if you want to go that route.
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