Posted on February 23, 2010.
NY 529 education savings plan for my son, please help!? Hello, I am investing with the NY 529 College Savings Plan of my son 6 years. I need some advice of some financial adviser on how to divide the percentages of where I want to invest my money in.
INVESTMENT OPTIONS (investing a total of 100%)
How much percentage should I invest on the following points:
Aggressive Growth Portfolio?
PORT INDEX stock growth. ?
PORT MID-CAP stock index.?
SMALL-CAP PORT stock index?
PORT OF VALUE-stock index?
this will be managed and invested by Vanguard.
Some other news, I have to work is:
The average annual total return since inception for:
Dynamic growth is 10.97 %.... for one year is 5.58%
Growth Stock Index 8.21 %.... One year is 4.75%
Mid-Cap Index stock is 18.22% ... One year is 13.56%
Small Cap Index stock is 15.45 %.... for one year is 7.11%
Value Stock Index is 14.09 %.... for one year is 6.70%
Please advice on how I should divide it to 100%. Should I invest in the top 3, 4 or all 5, and what percentage?
Thank you!
Since you have a horizon of about 12 years of investment, you can put 100% in equity funds comfortably, but remember that as your son grows, must be balanced and more conservative funds such as fixed income ( bonds) and cash (money markets). All your options now are equity only. Check your allowance every year or two.
In addition, there are options based on age can be useful because you do not need to rebalance your portfolio as your son grows. The funds will be done automatically based on their age. I think Vanguard has these types of funds available in his 529.
sustained growth, growth and value are all concentrated in large capitalization, then remember that this is not really far from the diversification of large U.S. stocks. So, I think:
Value 30%
15% Aggressive Growth
20% growth
(65% of the concentration of Large Cap)
20% Mid Cap
15% Small Cap