Unlike retirement assets, which most people will slowly deplete over 20-40 years, you can expect to use up your college savings account over a 2-4 year window. This means, that unlike your retirement account, you don’t have the freedom to ride out a temporary hiccup in the investment markets.
While higher risk investments may be acceptable when you have a decade or more left until the money is needed, as you get closer to actually needing to withdraw funds, you should consider moving towards less volatile assets. The recent introduction of aged-based accounts in Section 529 plans has made this process automatic and is a great option for parents who have limited time or investment knowledge.
