College Savings Plan of Nebraska......?

I am investing for my son who is 1 year old. Which of the investment options would you suggest for the long term?

First, let me congratulate you for planning ahead and starting early on investing for college. When your son is ready to enter college, you'll probably be very glad you did!

I'm not familiar with the Nebraska plan (though I did just take a quick look at it), but for a child that young, you have quite a few years before needing that money, so I personally would go with 100% stocks because historically, over long periods of time, stocks have the highest returns of any asset class. When the child gets within a few years of needing to go to college, I'd move some (but not all) of it to something more stable (but lower yielding) like money market funds.

It looks like Nebraska has "age based" funds which have the advantage of reallocating the money automatically as the child ages. Something like that could be a good choice for someone that doesn't want to have to think about how and when to reallocate the funds. I see four choices there from "Aggressive" to "Conservative". Which you choose will have to depend on your own personality. Generally, the "Aggressive" can be expected to bounce up and down a lot more, but in the long-term grow the most. The "Conservative" probably won't bounce up and down as much but also probably won't grow as much either. It's a personal decision whether you're will and able to handle the greater ups and downs of the Aggressive in order to likely have more money when he goes to college.

If you choose not to use the age-based funds and allocate the money yourself, what I would do with my money for my child would be something along the lines of 15-20% international, 30-35% small-company stock, and the rest in large company stock. That provides pretty good diversification, but would fall into the "aggressive" category, so that might not be what you want to do depending on your risk tolerance.