11.18.19

Average Start for 529 College Savings (Age 7) Is Costly, Study Finds

by: Ann Carrns

Many families wait too long to open 529 college savings accounts, a new analysis from Morningstar finds. On average, 529 accounts are opened for children who are just over 7 years old, Morningstar found in its annual analysis of the plans. Early on, age-based portfolios invest in a higher proportion of stocks, which have more potential for long-term gains. The average age-based portfolio begins with about 83 percent in stocks when the child is born, gradually reducing the stock allocation to about 67 percent at age 7 and 14.7 percent at age 18. Savers who wait until the child is 7 to open an account miss out on potential gains from the early investments.

Read the full article on New York Times