Well, I’m going to give you a different approach on that now that your child is only four or five years away from college. I’m very conservative — and we are, I think, nearing the end of a very long bull market. So I’d suggest keeping the money OUT of a 529 plan and in conservative bank CDs. That way you won’t lose a penny,though you won’t gain much.
I may be very wrong, and the stock market will go straight up for the next four years–but I doubt it! I still believe in 529 plans, but they should be opened when a child is young, and there is a longer time period to make the money grow. Please write back in four years when you need the cash for college and let me know if this turned out to be a good idea! I know it’s what I would do if it were my child, my savings!