Financial planning

Investment risk and 529 plan investors

July 27, 2023

A line chart showing portfolio risk over time, using equity allocation as a proxy for risk, with beneficiary age on the x-axis and median equity allocation on the y-axis. There are lines for three investor types: self-directed, glide path, and mixed, as well as a band showing the equity allocation range of glide-path portfolios.  The chart shows decreasing equity allocations as age increases for all investment types. Self-directed investors have the largest equity percentages throughout, with an equity allocation of 100% from beneficiary age 0 through 13 and remaining above 70% through age 25. The pure glide-path category starts at a 95% equity allocation at beneficiary age 0 and then declines the fastest, to near 10% at age 25. The mixed category starts with lowest age-0 equity allocation, just below 90%, but declines more gradually than the glide-path category and has an equity allocation around 40% at age 25.
Vanguard Information and Insights

Get Vanguard news, insights, and timely analysis on the market, delivered straight to your inbox.

Read our privacy policy to learn about how we keep personal information private.

* Indicates a required field

Vanguard Information and Insights

Thank you for subscribing to Behavioral research.

You'll be notified when new content is published, but will only ever receive one email a day from Vanguard Insights.

Vanguard logo

Vanguard is the trusted name in investing. Since our founding in 1975, we've put investors first.