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?

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

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.

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

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.