Definition: Age-based investments or portfolios refer to a Section 529 college savings account that automatically changes its investment mix every year as a child get closer to college age.
These accounts generally move (or re-allocate) from a higher concentration of stocks towards a higher concentration of bonds and money market.
Also Known As: age-based portfolios, age-based allocation, years to enrollment, target funds, lifestyle funds
Alternate Spellings: age based
Common Misspellings: aged base, aged basis, age basis, ages based
Examples: Due to a lack of investment experience, many parents will choose an age-based portfolio in their Section 529 plan.
