Ask Terry Questions Losing $ in 529 College Savings Plan

Losing $ in 529 College Savings Plan

By Terry Savage on December 10, 2018 | College Savings / Student Loans

I started a Brightstart 529 College Savings for my 1 year old this year, and since the inception date I have contributed $1,000. Do to the current market turmoil, the value has decreased by almost 15%. I am utilizing the Aggressive Age Based 0-2 Plan, and essentially every other plan is performing poorly as well. Should I ride this out hoping it will rebound after the potential recession in the coming years, or this a better vehicle that you would suggest?

Terry Says

The advantage of a 529 is that the money grows tax deferred.  But if the market goes down, and you’re heavily invested in the stock market, then the value of the account goes DOWN!  I’m pretty concerned about the stock market these days — and you’ve given me an idea for a column.  You’re allowed to switch ONCE A YEAR to different investments.  I can’t predict the stock market but I think this would be a good time to switch investments to the most conservative option available!

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