Sponsored by the State of Nevada and administered by Upromise Investments, Inc., the nationally available Vanguard 529 College Savings Plan offers 21 investment options, including three age-based options and 18 individual portfolios, with all-in costs expected to be as low as 0.65%.
The three risk-based investment “tracks” are designed to create conservative, moderate and aggressive asset allocations. The portfolios will automatically adjust from a higher allocation of stocks for younger ages to a higher allocation of bonds and money market investments as the covered child nears college age.
Vanguard’s asset allocations within the portfolios are relatively conservative. For example, the so-called Conservative Investment Track automatically adjusts into a proportion of 75% bonds and 25% money market investments when a child reaches the age of 11 – “considerably more cautious than many of the age-based options available today,” Vanguard Chairman John Brennan noted in a recent press release .
In addition to the risk-based offerings, the Vanguard 529 College Savings Plan will also offer 18 Vanguard stock, bond, balanced, and money market portfolios, including five custom portfolios available only to plan participants.
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