Are age-based funds good for 529?

Parents with young children should consider using an age-based asset allocation. Most direct-sold 529 plans offer age-based portfolios, which generally start out invested in equities (stocks) and automatically shift toward more conservative fixed income assets as the beneficiary gets closer to college.

Do 529 plans have investment risk?

Every state offers one or more 529 plans, and most provide tax breaks if you invest in them. However, you don’t have to invest in your own state’s plan. 529 plans have some risks, but they’re still one of the best and easiest ways to invest for your child’s education.

What is an age-based portfolio in 529?

Aged-Based Portfolios | College SAVE. College SAVE’s age-based options are ready-made portfolios that adjust based upon your child’s age. That means, when your child is younger, your portfolio may include aggressive investments with a higher potential for growth as well as risk.

What is an aggressive 529?

Aggressive 529 portfolios Vanguard 529 portfolios classified as aggressive are subject to extremely wide fluctuations in unit prices. These portfolios may be appropriate for investors who have a long-term investment horizon (10 years or longer).

How do age-based 529 plans work?

You select the fund in which your child’s date of birth falls. This approach allows the 529 account to stay in a single fund the entire time as your child grows. As your student grows older, the asset allocation mix shifts from mostly equity investments to more conservative bond and money market investments.

What is considered an aggressive portfolio?

An aggressive portfolio takes on great risks in search of great returns. A defensive portfolio focuses on consumer staples that are impervious to downturns. An income portfolio concentrates on shareholder distributions. The speculative portfolio is not for the faint-hearted.

What is Vanguard’s most aggressive fund?

Ranking by percentage
2 Vanguard Total International Stock Index Fund 40.60%
Total 100.00%