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Financial Planning / Paying For College
|Subject: Age Based Allocations in 529||Date: 1/4/2013 6:10 PM|
|Author: trakl||Number: 8007 of 8301|
I'm a five-time uncle. I have 529s for each kid. They're presently 4, 6, 8, 9, and 13. I put in $25 a month every month for each kid. The results probably aren't going to amount to much more than a semester's worth of tuition by the time they're 18, if that, but it's what I can do and at least it's something.
The 529s are through the state of Michigan in a program called MESP. They offer age-based allocations for the investments, which I think is great. Much of my own retirement saving is in age-based funds, and I love the set-it-and-(mostly)-forget-it nature of these instruments.
MESP has decided to make a simple thing more complicated by offering THREE types of age-based funds: conservative, moderate, and aggressive. All of them get less aggressive and more conservative over time, but the levels of risk across the board are lowest for the conservative, highest for the aggressive. See https://www.misaves.com/portfolios/index.shtml for the breakdowns.
I've got them all in the Aggressive ports right now, but I wonder whether I should switch to the moderate. How the heck, having broken my crystal ball, am I supposed to make this determination?
Perhaps the most reasonable answer would be: Don't worry about it. The amounts of money we're talking about here are so small that there's not going to be a big difference between the different outcomes no matter which one I choose.
Any thoughts? I thank you in advance for your advice and consideration.
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