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Reply to "Losing $ in Fidelity 529 Plan"
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[quote=Anonymous][quote=Anonymous]Instead of gambling your kids college fund, you should have considered a prepaid tuition plan that locks in todays rates of tuition. Its a risk free 4% yearly rate of return basically depending on how much tuition actually goes up. [/quote] It's not risk-free. The risk is that tuition does not go up much and that you gave up potential higher returns had you invested in elsewhere. Basically, you are "investing" the money in the college tuition - betting that the costs will go up at a higher rate than what you could earn if you put that money in other investments. Still a risk, just a different one.[/quote]
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