Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: trakl One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 8178  
Subject: Age Based Allocations in 529 Date: 1/4/2013 6:10 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
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.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Paying For School Guide
Trying to Tackle Tuition? The Motley Fool's Guide to Paying for School will help you fight those rising education costs.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Value Hounds

Considerable Headwinds for Profire Energy?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement