5 crisis questions answered

You've sent us an unprecedented number of questions about how to cope with this scary market. We've asked our top experts to help you out.

Penelope Wang, "Fund Watch" columnist

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Answer: No question, the bulk of your college savings should be safely stashed in bonds and cash by the time your child is decorating her dorm room at Wassamatta U.

But since the returns on fixed-income assets will undoubtedly lag inflation over the next 15 years, stocks still remain your best shot at keeping up with those scary tuition hikes.

Instead of sweating asset-allocation decisions, consider an age-based fund in your 529 plan, which will give you a diversified portfolio that automatically shifts toward bonds as your child nears college.

Not all age-based funds are alike, though, so be sure the one you choose will preserve your gains as the college date approaches.

Some aggressive funds keep a 35% allocation to stocks, even as your child is entering college. Not good. Others, such as Utah's Education Savings Plan Option 2, shift 100% to cash by the enrollment date.

If your state's 529 doesn't offer a suitable age-based fund, you can opt for another state's plan. (For more information, go to savingforcollege.com). Of course, you can always build your own stock and bond fund portfolio within a 529 plan.

But under 529 rules, you can switch your investments only once a year, which limits your ability to manage your portfolio. You can get around this rule by changing the beneficiary on the plan, which restarts the clock on investment switches.

But that's a lot of hassle to do something that the right age-based plan will do for you automatically. Better to focus your energies on helping your child do well enough in school to qualify for a great financial aid package.

NEXT: What kind of relief will average Americans get?