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Reply to "Why do donut hole families"
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[quote=Anonymous][quote=Anonymous]So we are a donut hole family and are saving in our kids 529s. My fear is that the economy will completely tank and my kids will be SOL. What is going to happen to parents who did their due diligence with saving if the Stock Market crashes? [/quote] The way our 529 is set up, and I think this is standard, is that the investments become less and less risky as you get closer to the year the child graduates. So if the stock market tanks and your kid has almost graduated, you’re fine because it’s invested in less risky things. If your kid is very young, you have many years for it to build back up again.[/quote]
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