Where would you keep college money right now

[Anonymous]

I have 500K saved for my two children, one is currently a college freshman and one is a high school junior. The younger child may not choose to go to college. What percentage of the 500K would you have in index funds and what percentage in cds given that one of the two is already in college? Freshman year is already paid for.

Thank you!

[Anonymous]

I would two years worth of your oldest child’s college costs in CD’s.

[Anonymous]

Something like 80% or more in Treasuries. Assuming the younger one goes to college on schedule you will need more than half the money in the next three years?

[Anonymous]

I have about half of it in CDs

[Anonymous]

Anonymous wrote:I have 500K saved for my two children, one is currently a college freshman and one is a high school junior. The younger child may not choose to go to college. What percentage of the 500K would you have in index funds and what percentage in cds given that one of the two is already in college? Freshman year is already paid for.

Thank you!

I would have 50% in CDs/cash alternatives, ideally enough for the college freshman to finish college.

[Anonymous]

0 in CD's. I just went for small caps as they are rate sensitive and then back to large caps.
Down market last under 2 years. No reason to go into CDs.
529 was already a lousy choice for $500k. Would be million in a regular account.

[Anonymous]

All in MMF or HYSA.

[Anonymous]

Anonymous wrote:All in MMF or HYSA.

Same. Maybe 20% in the market? Everything else, you are way too close in time to be risking unless this 529 is a nice-to-have add-on and not the main way you will pay for college.

[Anonymous]

Anonymous wrote:0 in CD's. I just went for small caps as they are rate sensitive and then back to large caps.
Down market last under 2 years. No reason to go into CDs.
529 was already a lousy choice for $500k. Would be million in a regular account.

I'm always curious when people say that college funds would be worth more in a "regular" account. Then you'd be subject to taxes on withdrawal and wouldn't get the tax deduction on contributions. How can you be so sure that growth elsewhere would be worth it?

[Anonymous]

Anonymous wrote:0 in CD's. I just went for small caps as they are rate sensitive and then back to large caps.
Down market last under 2 years. No reason to go into CDs.
529 was already a lousy choice for $500k. Would be million in a regular account.

None of it was every in 529s!

[Anonymous]

In a strong box.

[Anonymous]

Depend on the kids age.

My son is grade 7 he has about300k in 529.
Allocation is 95% equity 5% bond. We only contribute minimal to have state tax deduction annually now.( about $5000) .

As he is closer to collage, I ll allocate more to cd or fix income.

[Anonymous]

Anonymous wrote:

Anonymous wrote:0 in CD's. I just went for small caps as they are rate sensitive and then back to large caps.
Down market last under 2 years. No reason to go into CDs.
529 was already a lousy choice for $500k. Would be million in a regular account.

I'm always curious when people say that college funds would be worth more in a "regular" account. Then you'd be subject to taxes on withdrawal and wouldn't get the tax deduction on contributions. How can you be so sure that growth elsewhere would be worth it?

Don't pay attention to this PP. Pretty sure it's the same person who on other threads claims on going 100% annual returns on their investments. Of course a 529 is the best approach for 99% of people, for the tax advantages you stated.

[Anonymous]

Anonymous wrote:I have 500K saved for my two children, one is currently a college freshman and one is a high school junior. The younger child may not choose to go to college. What percentage of the 500K would you have in index funds and what percentage in cds given that one of the two is already in college? Freshman year is already paid for.

Thank you!

The first question that no one seems to be asking you -- do you have other funds to pay for college for a year or two or even three or is this it?

If this is it then for kid 1 I would have the next two years in cash -- CD, MM, but cash. At this point next year I would put senior year in cash. For the other kid I would have everything invested -- maybe 1 year in cash.

If there are other funds that could be used I would have 2 years in cash for kid 1 and the rest fully invested.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:0 in CD's. I just went for small caps as they are rate sensitive and then back to large caps.
Down market last under 2 years. No reason to go into CDs.
529 was already a lousy choice for $500k. Would be million in a regular account.

I'm always curious when people say that college funds would be worth more in a "regular" account. Then you'd be subject to taxes on withdrawal and wouldn't get the tax deduction on contributions. How can you be so sure that growth elsewhere would be worth it?

Don't pay attention to this PP. Pretty sure it's the same person who on other threads claims on going 100% annual returns on their investments. Of course a 529 is the best approach for 99% of people, for the tax advantages you stated.

That’s right, there is one lone crazy person that always says this. But you don’t want to live your life assuming you are going to outperform the market ten-fold!