Seeking advice regarding VA529 investment strategies:
We have two kids ages 9 and 7 and since birth have been steadily investing as feasible in VA529s for them under the appropriate target enrollment portfolios for their ages. Only recently have I begun to look more closely at the portfolios and realized how conservative the investment profile is, given their ages, and how dismal the performance had been to date relative to market gains (not to mention the relative high fees compared to other investment options.)
We currently have ~80k total in their existing 529 portfolios (About 45k for my 9 year old and 35k for my 7 year old). We also recently had a windfall and are positioned to contribute an additional 80k total to their 529s over the next month.
My inclination is to shift away from the high cost target enrollment portfolio fees and move the existing investments for each child into the “moderate growth” investment portfolio (which seems to have a similarly conservative risk level to the target enrollment funds but with lower fees) while investing the additional 80k more aggressively in the va529 stock index portfolio.
Given that we have ~10 years before our older child starts college and ~12 years before the younger one does I feel like it makes sense to take a more aggressive investment approach but would greatly appreciate your perspectives!
We have two kids ages 9 and 7 and since birth have been steadily investing as feasible in VA529s for them under the appropriate target enrollment portfolios for their ages. Only recently have I begun to look more closely at the portfolios and realized how conservative the investment profile is, given their ages, and how dismal the performance had been to date relative to market gains (not to mention the relative high fees compared to other investment options.)
We currently have ~80k total in their existing 529 portfolios (About 45k for my 9 year old and 35k for my 7 year old). We also recently had a windfall and are positioned to contribute an additional 80k total to their 529s over the next month.
My inclination is to shift away from the high cost target enrollment portfolio fees and move the existing investments for each child into the “moderate growth” investment portfolio (which seems to have a similarly conservative risk level to the target enrollment funds but with lower fees) while investing the additional 80k more aggressively in the va529 stock index portfolio.
Given that we have ~10 years before our older child starts college and ~12 years before the younger one does I feel like it makes sense to take a more aggressive investment approach but would greatly appreciate your perspectives!
Statistics: Posted by CJCM2003 — Wed Sep 04, 2024 2:23 pm — Replies 2 — Views 98
