A glide path consists of a collection of asset allocations that automatically adjusts over time to decreasing levels of expected risk as the expected matriculation date of the beneficiary approaches. It is designed to optimize returns in the earliest years of college savings and investing. Then, by shifting assets to lower-risk portfolios over time, it can better protect plan savings from a potentially large market downturn in the years leading up to college. This risk reduction can be particularly valuable when the account balance is at its highest point and relatively few years remain to make up for a shortfall in college funding.
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