Advice on 529 allocations

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Topic Author
tdleblanc
Posts: 4
Joined: Sat Jan 26, 2019 6:10 pm

Advice on 529 allocations

Post by tdleblanc » Wed Jun 12, 2019 10:05 am

I am looking for perspectives on how to allocate 529 holdings. I am not clear on whether the best practice is to recreate the three-fund low-cost portfolio or to leverage the age-based portfolios.

If I go the 3-fund route I will want to build it on these Blackrock and/or iShare options:
https://olui2.fs.ml.com/Publish/Content ... Sheets.pdf

If I go the age-based portfolio there are either Blackrock or iShare options:
https://olui2.fs.ml.com/Publish/Content ... tSheet.pdf

FWIW, one child is entering 5th grade and the other entering 3rd.

So...
1. 3-fund or age-based?
2. Blackrock or iShare?
3. Any other guidance/tips?

User avatar
fortfun
Posts: 2010
Joined: Tue Apr 19, 2016 7:31 pm

Re: Advice on 529 allocations

Post by fortfun » Wed Jun 12, 2019 10:17 am

I used Vanguard age based. I used aggressive until about age 10 and then switched over to moderate. It has served us well. Seems like your age based choice is good.

Topic Author
tdleblanc
Posts: 4
Joined: Sat Jan 26, 2019 6:10 pm

Re: Advice on 529 allocations

Post by tdleblanc » Thu Jun 13, 2019 10:08 am

Did you allocate 100% into the age-based funds?

Here is the rundown of Blackrock vs. iShares:

Blackrock age-based 8-10 year
- 5 yr performance: 5.9%
- 10 yr performance: 10.7%
- Equity: 60%
- Expense ratio: 0.58%

iShares age-based 8-10 year
- 5 yr performance: 6.2%
- 10 yr performance: N/A
- Equity: 60%
- Expense ratio: 0.27%

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