Anonymous
05/05/2024 15:14
Subject: s/o 529 allocations and rationale
We have $200k for our 4yo in an all equity index fund
Anonymous
05/05/2024 15:09
Subject: s/o 529 allocations and rationale
Anonymous wrote:NP.
Since the topic of 529 is going on here,
(1) does it happen that someone diligently puts money in 529 for 17 years and the money goes down by the time of the withdrawal?
(2) how much money should be in 529 for a 9 year old child? Thumb rule?
You really missed the financial planning 101 course. Go get some help with a professional. I wonder what other mistakes you have made or will make.
Anonymous
05/05/2024 14:23
Subject: Re:s/o 529 allocations and rationale
Anonymous wrote:Anonymous wrote:We have 529s for all of our grandchildren who are ten and under. We are almost entirely in equity index funds. When they hit HS age I will likely derisk to a certain extent.
NP here, with a child about to start high school, so we will need the funds starting in just over 4 years. What do others do with the funds once their kid hits high school? Right now we have our college fund (not a 529, just a brokerage account) in VTSAX (vanguard stock market index fund).
If you are 4 Years out from needing the funds, I would be no more than 20% equity. Most of the people in this board only remember the last 10 yrs, which have been great for US large cap stocks. Don't forget that you can absolutely lose your ass in an extended bear market.
Anonymous
05/04/2024 16:04
Subject: s/o 529 allocations and rationale
Ours are in an S&P 500 equivalent. If the market tanks, it would suck but we could cover it.
Anonymous
05/04/2024 15:34
Subject: Re:s/o 529 allocations and rationale
Saving for college is trickier than retirement because the runway is a lot shorter. There is not as much opportunity for compounding or on the flip side not a lot of time for recovery from a bear market. Each person has to decide what ylthey are comfortable with.