Bright Start 529 Plan
Hi Terry- I am in the process of investing seed money into the Illinois Bright start plan for our grandson who is 10 months old. Givin his young age I am leaning towards a portfolio in the plan of Vanguard Total Stock Index (75%), Equity Portfolio (25%). Do you agree with this approach or is this too much exposure given the current market volatility?
Terry Says
You have about 18 years to grow this money before it is needed. I recommend just using the age-based plan, which will indeed give you maximum exposure to the stock market. As a fact of history, there has never been a 20-year losing period for the S&P 500 — going all the way back to 1926!
