Parents across the country are freaked out over their 529 statements. They're seeing balances shrink because they may be heavily invested in the volatile stock market. Do not do stocks when your kids are teens -- that's like playing with fire. Note that doing a 529 plan and picking mostly stock investments is only a problem if your kids are 5 or less years from college. If they're not, you can actually benefit by contributing dribs and drabs each month during the tough times in the stock market. That way you accumulate more stock for your dollar before the selling prices bounce back.

Clark has 2 simple rules for you to follow when it comes to 529 plans. Rule No. 1: Make sure you're going the commission-free route when you buy. You wouldn't go to a commissioned stock broker, so why would you buy into your 529 plan through a commissioned salesperson? Rule No. 2: Do the age-based portfolio options. You need different investment mixes when your kids are 5 and when they're 15, for example. That usually means taking on risky stocks in the early years and picking safer options as you get into the teen years. Age-based portfolios adjust roughly every 2 years to make your risk level more and more conservative. So don't stop contributing because you're worried about the stock market. Just change how you invest. Check Clark's recently updated 529 plan guide for his top picks of plans around the country. You usually get a state tax advantage by going into your state's plan. But if you're state is not listed, forget the tax benefit and go into one of Clark's top 3 choices. One final caveat: Make sure you fully fund your 401(k), Roth or SEP before saving for college. There's no scholarship plan for retirement, but your kids can always take out loans or work their way through school.