Contributing to 529 now (4 yrs til college)

[tripleshot]

DS is in 8th grade and has a 529 through our state. I think it’s in a vanguard target fund. Up until 2 months ago, we only contributed a small amount ($25-50/mo) because we hadn’t yet maxed out our Roth IRAs. Now that our cars are paid off, we maxed both our Roth IRAs and upped the 529 to $265/month. And then of course the stock market tanked. Should I keep contributing the new higher amount or reroute that money to savings? I guess I’m just worried since college is not far away, it may be risky and I don’t want to lose the new contributions.

[orval]

I think our financial guy told us the target funds get more conservative as you get closer to college. Kind of like a retirement target fund. Not sure if that helps any. You might want to confirm with your fund as well.

[goldengirlz]

I actually think this is a good time to contribute. Stocks are cheaper right now and I’m hopeful that we’ll be in a recovery within the next four years, and certainly within the next eight years.

I agree that it’s worth being more conservative in your investment choices, especially because I don’t think we’ve seen the bottom yet, but I also think four years is enough time to lean toward investing rather than just holding on to cash.

[formerlyak]

Thank you for asking this. I’m in the exact same boat, and am curious what others think.

[flygirl]

I would put a chunk of money in now if I could, so I vote good idea. If you only had 1 yr, I might say not to, but for 4, I’d hope you’d get some sort of return better than a savings account. Elections usually give a small bump too.