529 performance sucks

[Anonymous]

Anybody else devastated that the 529 they put so much hope in has yielded 3-3.5% over 10 years?

[Anonymous]

Virginia? It's the absolute worst. Idk what those idiots are investing in, but it has to be losing stocks.

[Anonymous]

My kids' YTD return is poor (but I shifted to a less risky allocation once the 529 balance hit my target, so it's only down 1.2% YTD), but the overall return over ten years is stellar. I just pulled it up, and that account has $ 123k in earnings, which isn't that much less than the amount in principal. I use Utah and have it in a custom static allocation and use vanguard funds.

[Anonymous]

Anonymous wrote:Anybody else devastated that the 529 they put so much hope in has yielded 3-3.5% over 10 years?

...you do know you can control the investments? Are you in a target date fund?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Anybody else devastated that the 529 they put so much hope in has yielded 3-3.5% over 10 years?

...you do know you can control the investments? Are you in a target date fund?

you can also choose to put your kid's 529 in a better performing state fund (some have far lower fees). you lose the state tax break in some cases, but sometimes it's worth it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Anybody else devastated that the 529 they put so much hope in has yielded 3-3.5% over 10 years?

...you do know you can control the investments? Are you in a target date fund?

you can also choose to put your kid's 529 in a better performing state fund (some have far lower fees). you lose the state tax break in some cases, but sometimes it's worth it.

Yes, and often you can rollover from your state fund after a couple of years to the lower fee option like Vanguard, and still maintain the state tax break.

[Anonymous]

I was feeling negatively that we never started one and just did regular stock instead. 16 yo. Glad we did.

[Anonymous]

Anonymous wrote:I was feeling negatively that we never started one and just did regular stock instead. 16 yo. Glad we did.

Well you paid a whole bunch in taxes that you wouldn't have if you had done say a Total Stock Market fund inside a 529.

[Anonymous]

I’m not looking this year. I looked first week of January and won’t look again until the markets have a couple of consecutive up months. Same with retirement accounts.

[Anonymous]

Ours did pretty well over the past 18 years. But I did the investments and didn't use a pre-selected option. Still mostly fully invested since we also have the prepaid to cover the initial 4 years.

Our loser was the Invest529 International which only averaged 5% a year from $70K to $110K.

The Invest529 Total Domestic averaged 23% a year from ~$110K to $330K

But I haven't looked since last month, so I'm sure they are down.

[Anonymous]

It's not the 529s fault. Most of the are just differently balanced index funds with relatively low funds. What you're complaining about is the market returns.

[Anonymous]

I do Maryland up to the allowable tax deduction amount and then do Vanguard-Utah for all other 529 funds. Just do S&P and VTSAX in both. They have killed over the last 10 years.

You just chose investments/vehicles poorly. Nothing to do with 529s…

[Anonymous]

I just took a look at my high school junior's account, which we funded 7 years ago in full. It has grown at an average rate of 5.3%. Not bad in my opinion considering we went pretty conservative...especially in the last few years.

[Anonymous]

Anonymous wrote:Anybody else devastated that the 529 they put so much hope in has yielded 3-3.5% over 10 years?

Until the last 4-5 months, you should have been getting 10-15% returns. What was it invested in?

This is likely why you do NOT select the Target date, but instead keep more in stocks until about 3-4 years before college starts, then start putting it into more conservative/cash alternatives/Bonds

[Anonymous]

My MD 529 global equity fund has been doing quite well for the last 15 years. Lows fees too.