college savings plan

[Brett Hartwig]

I have asked questions about my kids college savings plan before, but here is another. We are enrolled in Illinois' version of the 529 plan- the Brightstart plan. We have contributed $1700 so far, and according to our recent statement, we have lost $1800. What the heck is going on? Should we be getting out of this investment, or leave it alone for 18 years and hope things get better?

 

[Nelson Atwell]

Wow! So you now owe $100 more than you invested? Yeah, I would probably get out. You'd do better burying the money under a rock.

 

[Richard Gosdin]

WOW, that is awful man. I have my sons college fund invested in a CD. I stuck it in a 5 year CD about a year ago because of the crappy economy, but at least he doesnt lose money on it. I would seriously consider directing future investments into some other sort of account until the economy gets better, then maybe..i stres maybe, move it into something more risky which it sounds like what you have it in now.

 

[Gerald Pierce]

I think Gov. Sonofabeach must have been using your kids college fund to pay for advertising the senate seat....

 

[TomT]

We lost a good portion of ours also. Along with my 457 plan but now's not the time to get out. Keep on investing and it will come back.

 

[Collin Lyon]

I just got my statement, and I lost a bundle. But I hear that now is the time to invest. I know over time, stocks go higher (example), but HOLY CRAP!



I need to sit down with godd 'ol Chucky Schwab and go over the game plan again . . .

 

[Jacob Dryer]

If I'm not mistaken (which could very well be possible) I believe that a 529 is like an IRA in that you selected the funds (be it mutual, stocks, bonds whatever) to put that money into, so it may be time to move them to a different fund, while keeping the 529 in place. Like Lyon said, as long as you have the stomach for it now is the time to invest.

 

[Thomas Rogers]

JDBoxes,



Many 529 plans simply have fund categories that are age-based, with risk levels associated. Two of my children are in the 12 to 15 year old age group, and their accounts lost about 20% last year. My 12 year old has time to recover, but my almost 16 year old will be going to college soon, and as it stands, we would have done better saving the money in a mattress.



TJR

 

[Jacob Dryer]

I guess it varies state to state more than I thought, or I don't totally understand it. We are just in the process of getting our college funds started and haven't actually done it yet for our twins.



I'm pretty sure that the way I explained it, is how either WA or MI is though. I can't keep all my details straight though, so I could be talking about an all together different saving plan, since we were bombarded with information.