When Choosing Funds for Your College 529 Plan, Don’t Make This Mistake

Age-based funds make sense for some retirement savers, but they rarely make sense for college savers, in my opinion. Here’s why.

A kid with a confused look on his face.
(Image credit: Getty Images)

Editor’s note: This is part one of a three-part series about college 529 savings plans. Part two is What You Need to Know about College 529 Savings Plans, and part three is College 529 Savings Plans: How to Get the Most Out of Them.

The average cost of public in-state college tuition, fees, room and board in 2020-21 is $26,820 a year and $54,880 for a four-year private college, according to a recent study by the College Board. For a child born today, the four-year cost of college is expected to be $526,629 for private and $230,069 for public, according to a recent study by J.P. Morgan. Imagine if you have two or three kids?

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Michael Aloi, CFP®
CFP®, Summit Financial, LLC

Michael Aloi is a CERTIFIED FINANCIAL PLANNER™ Practitioner and Accredited Wealth Management Advisor℠ with Summit Financial, LLC.  With 21 years of experience, Michael specializes in working with executives, professionals and retirees. Since he joined Summit Financial, LLC, Michael has built a process that emphasizes the integration of various facets of financial planning. Supported by a team of in-house estate and income tax specialists, Michael offers his clients coordinated solutions to scattered problems.