Which plan shows higher probability of success for Alberto's Education goal due to plan choices?

Which plan shows higher probability of success for Alberto's Education goal due to plan choices?

• A. The Base Plan
• B. The Recommended Plan
• C. Neither plan shows higher probability
• D. Both plans show equal probabilities

Answer: (B)

The main idea is that how a plan is designed directly affects your ability to reach a future education goal. The recommended plan increases the probability of success because it is structured to grow savings effectively over Alberto’s time horizon while keeping costs and risks in check. It typically supports consistent contributions (and may offer automatic increases as income grows), uses an asset mix that balances growth potential with appropriate risk for the time left until funds are needed, and minimizes fees and taxes that can erode returns. All of these design choices boost the expected growth of the education fund and reduce the chance that costs or poor returns derail the plan.

In contrast, the base plan may have less favorable features—smaller or less regular contributions, a less suitable investment mix for the target date, or higher fees—leading to lower expected growth and a reduced likelihood of funding the goal on time. Because the recommended plan aligns contributions, growth potential, and costs more effectively with Alberto’s education timeline, it shows a higher probability of success.