Reply to 529 contribution planning question

Forum Index » Money and Finances

Reply to "529 contribution planning question"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous]Why are you caught up on prepaid? Doesn't that mean it works for only a handful of in-state universities? I don't think that's a wise bet to make.

Instead, just do the general 529.[/quote]

I'm not caught up on the prepaid.. just wanted input from folks on using that to minimize risk.   529 is totally market dependent and I will be using it for 50% of my needs (2 years).  I was hoping to use the prepaid for 25% (1 year) and current income/outside investments for the other 25%.   I understand that it works only for a handful of universities.  However, instead of keeping 25% of my educational needs as cash, I thought it might make sense to place it in a prepaid account, get the state tax deduction and if it works out (kid goes to state school) benefit from inflation adjustment.  Isn't that better than just holding cash? [/quote]

That's why you get an age-based investment, as listed on VA's 529 plans:
http://www.virginia529.com/invest/index.php

Let their experts worry about market risk and cash, not you. In short, when the need to use the money is far out, they'll take a more risk-based approach, and as the day of schooling nears, it will shift heavily towards safer investments like cash and bonds.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics