Reply to Losing $ in Fidelity 529 Plan

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[quote=Anonymous][quote=Anonymous][b]I assume that the S&P 500 is a reasonable benchmark for your 529[/b] (i.e., you weren't invested in riskier funds focused on things like small companies or emerging markets).  You could look into switching to index funds for your 529--at least if you have a S&P 500 index fund, it's going to perform the same as the S&P 500.  The real benefit of index funds is lower fees compared to actively managed mutual funds.[/quote]

No, it isn't.  OP invested in the target date funds.  They have more aggressive strategies for longer-term investments, and since her 6 yo is 11-12 years away from college, the investments are probably fairly aggressing (as compared to her older kids, who are closer to college, have less risky investments, and hence did better).

OP, this is part of the deal with a target date fund.  If you switch now, you are doing 2 things - locking those losses in, and stating you don't believe in the investment strategy of the target date fund.  And that might be the right decision for your peace of mind, but as another PP stated, one year is a really short time by which to try to judge a fund.  [/quote]

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