Hi I have a 12 yo kid whose 529 account just reached the goal for the total value that I figured the kid would need. In large part, this happened due to outsized stock market gains (since 2022 particularly).
Since there are 6 years left before drawing from 529, how would one handle this investment wisely? Keep 529 in target funds? Move to short term bonds / cash? Keep on contributing? TY
Posted by RadiatingMania
4 Comments
I’d keep contributing if you’re able to. 529s are quite flexible
Keep contributing. If they don’t use it you can throw up to $35k in a Roth for them.
I faced a similar situation. My solution was to switch into a 50-50 bonds/equities split. That way I know I have enough to cover college, even if the equities crash. But if the equities gain, then he’ll have a cushion.
Yeah I’d keep contributing. Worst case you can roll over 35k into your kids Roth IRA if they don’t need to us it all for tuition.