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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 8314

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 fo