College Fund
My husband and I want to start a college fund for our daughter, but the current state of the economy makes deciding on how to do so a little overwhelming.
I read a news story recently that said many people who invested in 529 plans for their children have found their accounts have lost quite a bit of money due to the market volatility. Some market investments are not as risky as others -- eg., a basic savings account -- but also have less potential for gain (my bank's basic savings account rate right now is 0.1 percent; inflation is higher than that, so putting her money in a basic savings account would still be like losing money as the money we put in it loses buying power).
It seems all options are a leap of faith. Whatever we choose, I want to read up on investing so that I am armed with as much knowledge as possible when I manage her account .
I read a news story recently that said many people who invested in 529 plans for their children have found their accounts have lost quite a bit of money due to the market volatility. Some market investments are not as risky as others -- eg., a basic savings account -- but also have less potential for gain (my bank's basic savings account rate right now is 0.1 percent; inflation is higher than that, so putting her money in a basic savings account would still be like losing money as the money we put in it loses buying power).
It seems all options are a leap of faith. Whatever we choose, I want to read up on investing so that I am armed with as much knowledge as possible when I manage her account .
Comments
Post a Comment