Ask Terry Questions college funding

college funding

By Terry Savage on August 11, 2015 | College Savings / Student Loans

I enjoy listening to you on WGN. My children are an incoming college freshman and high school sophomore. We have saved enough money to pay for 4 years of college (approximately $120,000 each). The money is split among a 529, money market, Alger International growth fund, Janus Global research fund d and a Vanguard 500 index fund. We obviously need this money over the next 6 years. I understand no one has a crystal ball, but I’m afraid of another downturn in the market and losing such important funds. Our broker has suggested that some of the funds be put in 2 year treasury bonds. What are your suggestions? Thanks!

Terry Says:  I pretty much agree with your broker.  The risk/reward on staying too invested in the market doesn’t look good because of your short time horizon.  But I’m wondering where a “broker” comes in here — Your money is invested mostly in no-load, no commission kinds of investments.  Unless you have other assets with your broker, he/she is acting in a very generous and selfless way by giving you this advice.  You can buy the Treasury notes directly at



a personal
finance question