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[quote=Anonymous]
Since my kids have been born 8 and 6 years ago, I've been socking away money in a 529 plan run by the state of Virginia. The College America plan run by American Funds. It always annoyed me to pay the 575 basis point load (I mean, a load-fund? Really?) but the tax break offsets the load fees and the fees are smaller on the backend.

Still, given market performance recently, all I recently was left with when I received my last statement was the principal. Sigh. At least I'm not losing money, right?

So, the Open Enrollment period for Prepaid tuition plan just began and I'm thinking of shifting strategies. My thinking is the return on investment for the prepaid tuition is the inflation rate of college tuition in the state of Virginia. We all know college tuition inflation has been off the charts, right?

As it is, I'm undercontributing to the 529 plan. About $650 a month for both kids.

For $50 more per month, I can commit to monthly payments towards two years of university-level tuition for each kid (with the idea of starting to buy a couple of more years when finances are better at a later time) IF I stop contributing to the 529 plan (but leave those balances in place).

My concern is I keep hearing how difficult it is for even top-performing students from Northern Virginia to get into the better VA universities, so if I was going to hedge in THAT direction, I'd probably prefer to chase market return since I have another 10 years before college.

What to do? I can do one or the other but not both.[/quote]

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