Children’s College Fund
Hi Terry! I am so thankful you have this platform to ask questions. My husband and I have 2 boys, 6 and 4, and we have saved around $40K combined for their college savings. We had met with a financial planner in Feb 2020 and discussed the 529 plan. We never pulled the trigger because the pandemic hit. We have the money sitting in our bank’s savings account doing nothing and I wanted to get your opinion on what we should do. Our plan is to keep adding to it every year. I very much appreciate you taking the time to review and answer my question.
Thanks!
Terry Says
Well, in this case your procrastination paid off! The market is about 30% lower today than it was just a year ago! So you didn’t miss anything but some aggravation by waiting.
Of course, no one knows when the market will hit bottom. But you could put half in when the headlines are screaming Bear Market! And then dribble the rest in monthly. YOu do have at least15 years until the money is needed, so over the long run you should come out ahead by investing vs just leaving the money in the bank.
