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[quote=Anonymous][quote=Anonymous]I've been saving since the kids were little in their 529s. We're in the College America plan for VA.

DD is in 8th grade. Turns out we're about $2,000 short of being able to prepay for 8 semesters in Virginia thanks to savings and appreciation.

I'm trying to decide whether to hedge future risk by going ahead and locking this in. I'd have to continue to save for room & board, and [b]I realize we'd have to cover any difference between in-state tuition and out-of-state or private.[/b]

As it is, I'm kind of worried about the market correcting in the coming months and not recovering before DD goes to college (I don't have a lot of faith in Trump's ability to actually bring about tax reform, and I think the promise of that is largely what's driving the market right now).  That said, seems to me like thinking there would be no recovery in 5 years is a bit crazy.

So, what do you think? Take the sure thing or let it ride and hope for further compounding?[/quote]

I don't think it's that simple. They don't just give you the in-state value, they give you some rate Of return on the amount you paid, which is generally less than what you would have earned in a VEST account. My understanding is that the pre-paid is a great Deal if you go in-state but not at all a good deal if you don't. Of course you still get the tax advantages.

If your daughter is in 8th grade,, you are probably starting to have some sense of what type of student she is, wha her interests are, etc. if I'm-state seems like a good fit, or you're really committed to her going in-state then do prepaid.  If you're all about keeping options open, then I wouldn't.

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