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.

How do I maximize my 529 plan?

Top 10 ways to maximize 529 plan benefits

1. Don’t wait to start saving.
2. Set up automatic contributions.
3. Look for a plan with low fees.
4. Reinvest any state income tax benefits.
5. Use credit card rewards wisely.
6. Ask for gifts.
7. Increase contributions when life changes.
8. Hold stocks longer.

Where do I Find my 529 investment options?

You can see the details of the underlying portfolios of a particular 529 plan by visiting your selected plan’s details page and scrolling down to the Investment Options section. There you can click on “See Investment Options” to view the portfolio options in any given plan, including information on fees, performance, and more.

Can a 529 savings plan go up or down?

The plan will offer you several investment options from which to choose, and your account will go up or down in value based on the performance of the particular option you select. If, like most college savers, you’re using a 529 savings plan, you’ll need to choose an investment option at the time that you open your account.

What to look for in a 529 plan?

Most 529 plans offer a limited menu of investment portfolio choices, typically a dozen or fewer, says Kantrowitz. Clients can use age-based portfolios, which will limit stock exposure gradually as the child approaches 18, or static portfolios, which you or the client can direct as desired.

Which is the best asset allocation for a 529 plan?

The asset allocation of the portfolio is focused on achieving a specific investment objective. It will remain the same over the life of the plan, unless the plan owner chooses to manually reallocate to other portfolios; best for more experienced investors. Static portfolios include: