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College Savings 529s

sschwegesschwege member
in Stay at Home Moms
We have just had the kids' money in CDs right now, until we decide how to better invest it.  We were looking at 529s, is that the way to go?  And if so, how do you decide how much 'risk' you are comfortable with.  I was looking at the age based one, which seems like a good idea, the risk is highest when they are young and becomes more conservative as they get older.  But then the worrier in me says, they could come away with nothing right?  We do have some money in bonds from family, so I guess they are always guaranteed that.  How are you guys approaching this?  
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Re: College Savings 529s

  • brachysirabrachysira member
    Most long term investments work like that.  More risk early and then more conservative closer to when you need it so you have some when it's there.  I think it's only reasonable to use the market despite the risk.  You can't save enough otherwise.
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  • notreallyirishnotreallyirish member
    It's pretty much impossible that they end up with nothing.  If that somehow ended up being the case, there would be some serious problems in the world beyond your kids' college savings.  I have 529s for both kids and am fairly aggressive in my investments.  Most of their money is in UGMA mutual funds, though. Again, pretty aggressive since they are so young.  It is not an education account and is theirs to do with as they wish when they turn 18.  Well, really it's theirs now, they just can do what they wish yet.
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  • vlagrl29vlagrl29 member
    I thought about 529s but read that they have to be used on schooling and if DD doesn't go to college then either DH or I would have to go back to college to use the money or it's a waste.  Not that i think DD wouldn't go to college but I would rather put her money in a money market account and invest it that way.  We aren't at a financial point where we can put a ton of money in it yet because we are saving for our own retirement, but we put in what we can when we can.
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