Q about 529 investing in the current market.

So, DS is 10mo and we're ready to open his 529 account. But as we're filling out the paperwork, we can't decide the best way to invest with the market the way it is and recession talk, etc. So, my question is, do you think it's better to go with the aggressive age based option which starts out with 100% stocks thinking eventually the market will go back up and it's better to buyw hen it's lower and not to worry so much cause it's a long term investment? Or be more conservarive and go for the moderate age based option which starts at 65% stocks and 35% bonds? I do not follow the market and don't have any outside investments besides my 401K, so I'm not sure what the smart decision is.

Re: Q about 529 investing in the current market.

I do not have a 529 for DS yet. However I have all of my own personal investments in aggressive. I have made pretty good returns thus far. My husband has his mutual funds in the moderate and he has not done nearly as well. So I say aggressive all the way.

Message edited 2/11/2008 9:17:43 AM.

Re: Q about 529 investing in the current market.

we do the moderate age based allocation

Dh did not want to be TOO aggressive

however, with my personal 401(k), I am aggressive. If it was up to me, I would do all aggressive but DH was not comfortable with that so moderate it is

Re: Q about 529 investing in the current market.

From a personal and professional standpoint, you want to be a bit aggressive with his 529 monies. He has 15-17 years before he will need this money and that is plently of time to ride out market cycles. Since you are not all that comfortable with picking the investments themselves, pick a moderately aggressive to aggressive allocation based on age. As he grows and gets closer to needing the money, the portfolio will become more conservative.

Re: Q about 529 investing in the current market.

We decided not to do a 529 and invest otherwise for DS.

Re: Q about 529 investing in the current market.