Paying for college

Lafalum84
Fri, 18 Jul 2008 15:42:36 +0000

Jolynne, that is an interesting question. While we were smart about the 529 plan, we also had a smaller amount of money in Coverdell Education Savings Accts (formerly called Education IRA’s) that only used regular mutual funds for investments, so D’s money there is in an account that’s 60% stock, 40% bonds. I don’t have the nerve to peek and see how much that’s fallen. I think I’m going to trust that it will rebound somewhat in the next 2 years, because moving it out of there into an all-bond fund means that I’m turning a paper loss into an actual loss, and I’ll miss out if/when the market does rebound. But I will say, it is indeed tempting to move the money out now to something that, at worst, won’t get any lower.

Sorry, I don’t have an answer for you if you’ll need the money in a year. Ick.