This blog will track the performance of my daughter’s 529 fund. I have set up a Vanguard portfolio with index funds using a 70% stock/30% bond split. I will rebalance if one funds grows to a certain value (as opposed to buying and holding). Check back regularly or subscribe for updates to see how my investment strategy does when benchmarked against an actively managed fund and against the popular age-based portfolios. I believe over the next 18 years, this “moderate” portfolio of index funds can outperform an actively managed fund and an age-based fund without requiring too much extra work.
Way too often, you see charts and graphs comparing certain funds or portfolios with certain benchmarks. It seems like the benchmarks (S&P 500, DOW, NASDAQ, etc.) always differ for yearly gains and you just never know how these comparisons are being made. Also, we all read the investment articles that talk about past performance. When you have historical data, it is easy to put together asset allocations that perform great!
This blog will test all of the theories. The same metric will be used for all comparisons. Wish me luck!