The investment portfolios available through any education savings plan or ABLE account (but not prepaid tuition plans) always take one of two forms: a static portfolio or an age-based portfolio. The latter is a type of automated investment option in which the allocation of funds changes over time as the beneficiary ages.

When the child is very young, investments tend to be aggressive, with the potential to generate greater returns and a higher level of risk. As they get older and closer to college, the investments in an age-based portfolio become gradually more conservative to preserve any gains. This strategy is a good choice for those with less experience investing or who don’t want to have to constantly manage their plan as the years go by.