One of the most important decisions you'll make in determining your college savings strategy is your asset allocation—that is, determining how to invest your money among stocks, bonds, and short-term reserves. Unlike most retirement time horizons, your college savings horizon is short and fixed because you'll likely need to withdraw all assets during the years the beneficiary attends college, generally between ages 18 and 22.

Keeping this in mind, you need to pay close attention to how you invest and manage your assets. It's vital to create a strategy that you can stick with throughout the years and that will pay off when your student heads for college. If you don't have the knowledge, time, or desire to manage a portfolio of individual securities, we suggest that you apply certain allocation strategies—growing assets when your child is young, for example—to college savings investments in mutual funds.

Choose an asset allocation »

Learn how to formulate an asset allocation to grow your assets in the early years of your savings plan and protect them as your student nears college age.

Investor temperament »

What kind of investor are you? Check our descriptions of typical investors to determine the level of risk you're willing to take.