Ask Terry Questions Investment for minor for college

Investment for minor for college

By Terry Savage on September 28, 2018 | College Savings / Student Loans

I have a college student who has some money he would like to invest short term. It is about 5,000 which he know he will need to school once his 529 plan runs out of money, hence the short term. Do you have any suggestions on where to invest?

Terry Says

Just put it in the bank! Obviously his time horizon is short-term. I would suggest ussing it sooner rather than later, because if he needs to file the FAFSA and apply for financial aid, money in his own name will penalize him heavily in the aid formula. So probably he should use the money sooner, and delay withdrawals from the 529 plan.

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