10: To 529 or not 529
as in saving for college
Should you save for college with a 529 investment plan?
Yes. You can’t bet on the future or your kid with certainty.
Using a blended strategy will be a natural hedge.
I don’t want to lock dollars into these accounts, especially with the prepaid plans, on very specific universities…
Yes, better to blend in some form. Either split the investment between 529 and another mutual fund or go all in with one investment strategy per child.
If there is so much uncertainty, with both the future of education and the market, I’d rather have a high risk long term investment that will outcompete 529 gains...
I think most people would go down that route. But with the flexibility, control, tax advantages, and ultimately protection a 529 offers you, it is a reasonable (and underutilized) college savings strategy to have partially or at least for one of your children.
I cannot manage to save the amount of money necessary for college for one or all of my children…
With the insane current and projected costs, I can feel your stress. Carve out whatever you can. Consider a 50/50 529 and mutual fund strategy. The rest is up to the adult you nurtured.
Bare Bone Recipe
This week I think about mustard mushrooms.
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