529 performance sucks

[Anonymous]

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

Why would you be glad to pay more taxes? And get the same returns?

Ours is invested in 529 in Mutual funds, but we have 15-20+ to select from. And it grew for 18+ years tax free.

[Anonymous]

Anonymous wrote: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.

And you should be conservative in the last few years before college---the last 6 months tells you exactly why that is the case.

[Anonymous]

Anonymous wrote:

Anonymous wrote: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.

And you should be conservative in the last few years before college---the last 6 months tells you exactly why that is the case.

Yes very conservative. Not taking any chances and we have the entire amount in a money market. We are fine with smaller returns 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?

Never put any home into it. Didn't even put a whole lot of money, but it did 2x. Learned to invest on my own in Roth and investment account. Have no interest in 401k, 403b, 529, HSA, Hysa or anything else offered by companies or government. Tax expense is near zero, so why bother.

[Anonymous]

What, no. I literally paid $86K for tuition last year from the year's gains, i.e. my 529 ended ~$10K higher last year than the year before after subtracting $86K. Same scenario year prior.

Now, I'm not a fool, so I banked the 3 years we have left for youngest into a money market fund the week after the inauguration. Boo.

[Anonymous]

PP here and just reading the thread, yes ours in a Vanguard account and I invested it in a stock index funds.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.

And you should be conservative in the last few years before college---the last 6 months tells you exactly why that is the case.

Yes very conservative. Not taking any chances and we have the entire amount in a money market. We are fine with smaller returns in the last few years.

Once you "have enough" that is a smart plan. We moved 50% to bonds/MM by end of sophomore year, and then moved 25% more once they finished freshman year and the rest once they finish sophomore year of college. We had enough but also had the means to pay outside the 529 if the market crashed with the 25-50% left in the market.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.

And you should be conservative in the last few years before college---the last 6 months tells you exactly why that is the case.

Yes very conservative. Not taking any chances and we have the entire amount in a money market. We are fine with smaller returns in the last few years.

Once you "have enough" that is a smart plan. We moved 50% to bonds/MM by end of sophomore year, and then moved 25% more once they finished freshman year and the rest once they finish sophomore year of college. We had enough but also had the means to pay outside the 529 if the market crashed with the 25-50% left in the market.

Close to enough with $360K. Obviously not enough with tuitions going through the roof. We're prepared to pay from other accounts to finish up senior year.

[Anonymous]

Anonymous wrote:

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

Why would you be glad to pay more taxes? And get the same returns?

Ours is invested in 529 in Mutual funds, but we have 15-20+ to select from. And it grew for 18+ years tax free.

Maybe glad isn't the right word. We were not able to even start one until our kid was older so we've made more in gains than taxes so it worked out. Not everyone has 18 years but that must be nice!

[Anonymous]

Yes, it's horrible. Really regret not doing Prepaid when we had the chance.

[Anonymous]

Anonymous wrote: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.

We have ours in Utah. I think we had something like 150k in gains over 18 years so that half of the account balance was growth. We moved to cash when DC was a junior in HS once we knew we had enough saved. The 529 def worked for us. For those complaining, 1) stay the course during this tough year. We did during the 2008 and 2009 downturn. 2) manage your investments within the account! Unless in HS, you shouldn’t be in cash or conservative rn, you should be investing more actually to buy the dip! 3) I never did the age related funds and I’m glad I didn’t because those options always underperformed.

[Anonymous]

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

The three GOP crashes in the last 15 years have not helped 529 accounts.

[Anonymous]

I'm "down" $6k on a $260k 529 portfolio. No complaints!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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

Why would you be glad to pay more taxes? And get the same returns?

Ours is invested in 529 in Mutual funds, but we have 15-20+ to select from. And it grew for 18+ years tax free.

Maybe glad isn't the right word. We were not able to even start one until our kid was older so we've made more in gains than taxes so it worked out. Not everyone has 18 years but that must be nice!

I don't understand anything in this post.

[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?

The three GOP crashes in the last 15 years have not helped 529 accounts.

Yeah they have. That’s where you make your money, assuming you don’t panic sell and keep buying.