For those with 529s

[Anonymous]

At what point, did you - or didn't you - put the money into a safer account, e.g., the 529's money market option.

Right now I have the amount I'll need for Kid #1's last semester of college tuition, he's graduating May 2025, and I project that with the amount I contribute monthly, on top of the amount I have in the account today, just slightly under the amount for Kid #2 (a HS senior) to pay for four years at her top choice school, which is an out of state flagship.

I've been thinking of transferring it all to the money market option, or maybe half of it. Was wondering what others have done?

The stock market dive the week before last spooked me, but then it nearly reversed itself last week, so...

[Anonymous]

I did it when they were HS sophomores. I missed out on some appreciation, but it could also have gone the other way.

[Anonymous]

I’m moved a lot over right before my kid started their senior year in high school (just having known people who lost such a big chunk of their savings in the downturn).

If you plan to still be making withdrawals through college, maybe keep 25-30% in stocks.

[Anonymous]

If you’ve got enough saved I suggest you transfer it to a risk free option. Congratulations. Save yourself the stress and consider it paid for. Invest in other buckets with risk and reward ( and longer term horizons). We’ll done

[Anonymous]

I kept mine in moderate growth the whole time, and have done very well. But I also had cash on hand to pay tuition, then I would pay myself back from the 529 when the value was up during the year. If you don't have that option, you should probably move some to safer investments. But will the market rise when interest rates cut next month?

[Anonymous]

I did it in Sophomore year as well. Could've kept it in growth, but hindsight is always 20/20 - right?

[Anonymous]

I'm the PP - I want to add that any new money was/is still going to growth fund, so not completely missing out. Just didn't want to take risk with the gains.

[Anonymous]

We're just sticking with the graduation year fund, which slowly adjusts. But really, you should be considering your total investment portfolio, if you have substantial other assets, including retirement accounts. In that case, you should keep a higher share in risky assets, because it's effectively combined. (If the 529 does well, you'll end up with more available for retirement and other needs, and if it does badly, you'll have less, but will have time to adjust, since you'll have retirement assets for many years.

[Anonymous]

Left it in growth til we used it. But if things went south, we had other options

[Anonymous]

I split mine, some growth and some 8n a plan designed to be more conservative as they approach HS graduation. Mine just graduated. I figure, I have 3 more years to grow for the last year's payment, so it's split. Same for older sis. She has more in growth because that's how I started hers, but with sib discount in FA, some of hers will roll over to sis. But, maybe I should shift some to the more conservative fund now.

[Anonymous]

Anonymous wrote:We're just sticking with the graduation year fund, which slowly adjusts. But really, you should be considering your total investment portfolio, if you have substantial other assets, including retirement accounts. In that case, you should keep a higher share in risky assets, because it's effectively combined. (If the 529 does well, you'll end up with more available for retirement and other needs, and if it does badly, you'll have less, but will have time to adjust, since you'll have retirement assets for many years.

Agree and disagree with this. Agree that you have to look at whole investment portfolio. You should take risk if you can. Disagree that graduation years funds are good. They have underperformed.

[Anonymous]

Against the advice of our excellent financial manager, we moved it end of junior year of high school. I run conservative when it comes to this stuff and need to sleep at night. Which he understands.

[Anonymous]

I kept it in growth because I knew we’d have to pay at least 2/8 years out of pocket, so picked first 2 years, while market was down. Just paid $65k for tuition last year, and the account has already appreciated more than that. Will now have way more than we need, starting year 4/1 for 2 kids, but will use for grad school, to fund IRAs, and/or pass to grandkids.

[Anonymous]

Money market is now running 4-5+% so you can "afford" to keep it in the money market. Not too long ago I would have worried that inflation of school costs would have eaten into funds way faster. But if you know you are going to use it and use basically all of it and don't have any other funds, go money market and be done!

[Anonymous]

Anonymous wrote:I’m moved a lot over right before my kid started their senior year in high school (just having known people who lost such a big chunk of their savings in the downturn).

If you plan to still be making withdrawals through college, maybe keep 25-30% in stocks.

+1 I put about 10% into equities for DC #2 who is a HS junior, and DC#1 college junior. DC#1 has more than enough with merit aid, so the potential growth in the equity account will be used for either DC#2 or rollover to their roth in the next couple of years (yes, the account will have been opened for more than 15 years) by this time.