When they were born, I started contributing to 529 plans for my nephews. Without giving it too much thought, I enrolled in the passive age-based portfolios. Now that they have automatically moved up a couple of age bands, I am looking at the funds' allocations and am surprised by how early they shift from equities to bonds. The 5-8 band and 13-14 band are duplicates of non-age-based options they offer. There, they call 30% bonds "aggressive" risk and 60% bonds "moderate" though I would call those ratios moderate and conservative. I'm considering sticking them in the passive growth (5-8) fund and leaving them there till they're 14 or 15 and shifting to something more conservative when they're about 3 years out from college. ScholarShare is obviously suggesting a much lower-risk route. Am I crazy to buck that advice?
Submitted April 12, 2018 at 12:14AM by craigiest https://ift.tt/2GUuz4z
