Investing for a 5-Year-Old
At age 5, a 529 plan opened at birth now has a 13-year education horizon. Age-based portfolios should be moderately equity-heavy at this stage. No IRA without earned income. Coverdell ESA contributions ($2,000/year) must be made before the child turns 18. K-12 tuition from a 529 is limited to $20,000 per year from 2026, double the earlier limit.