When opening a 529 plan, account owners must choose which of the two types of portfolios they want to invest in: an age-based portfolio or a static portfolio. The latter of the two, static portfolios, are those determined entirely by the account owner, with minimal involvement or changes made on the part of the plan administrator or advisor.

Unlike age-based portfolios, which shift allocations automatically over time, static portfolios don’t change unless the account owner does so themselves, making them a better option for those who have experience managing investments. Most plans also offer far more options for static portfolios than for age-based ones, and many allow for customized investments in a mix of funds determined by the account owner.