Age-Based PortfoliosFor many, the professionally designed age-based portfolios will be the most attractive. Basing your investment strategy on the current age of your child, the objective is to create growth potential in the early years—and reduce fluctuations in the account as college approaches. You can choose from an aggressive, growth, or balanced allocation track. For example, if you open an account for a nine-year-old and select the aggressive option, the portfolio allocation would be 60 percent domestic equity, 20 percent international equity, and 20 percent fixed income. When the child turns thirteen, the allocation automatically adjusts, lowering the overall equity exposure from 80 to 60 percent, while increasing the fixed income, or bond, exposure from 20 to 40 percent. Aggressive, Growth, and Balanced Age-Based Pie Charts illustrate the breakdown of the portfolios between domestic equity, international equity, fixed income, and money market funds and how those ratios automatically adjust as a child grows older. Click on any pie chart for additional detail
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