Age-Based 529 Plans

As of September 2012, there were 170 age-based investment tracks within 529 plans (source: WSJ). The difference between fund offerings can be wide. For example, one aggressive age-based option leaves 28% of the portfolio in equity funds when a child is in college; the least aggressive offering has 0% in stocks at the time.

 

For individual investors and advisors, there are a few sources that can help them decide which age-based track to select. Morningstar and Savingforcollege.com both rate 529 plans and include online comparison tools.