Hello,
will you kind folks please help me analyze and make suggestions for my kids' 529 plans?
I have 3 sons, ages 13, 12, and 10. Expected HS grad dates 2028, 2030, and 2032.
Backstory: I have a 529 account for each child--each of these accounts has ~$60k, all in VTSAX. I recently assumed control of an additional account for each child--they were started by my in-laws, they're getting elderly and want my wife to take over, which means I need to take over.
These accounts have ~$38k each, with $30k of VTSAX and $8500 of "Vanguard Inflation-Protected Securities Portfolio", henceforth referred by me as VIPS for brevity.
This is an Active fund with an ER of 0.18%.
The VIPS portions were bought for $9000 in Feb 2022. The current balances two years later are $8500.
The 3 year return is: -1.21%
The fund return since inception in 2002: 3.5%.
My thoughts: A negative 1.2% return seems poor for the past three inflation-y years for a product called "Inflation-Protected." I am thinking about exchanging these VIPS portions for VTSAX. I am not planning on making any further 529 contributions: ~$100k per child seems like plenty with T-minus 4, 6, and 8 years til HS graduation.
What say you, dear Bogleheads? Would you leave the VIPS alone, exchange to VTSAX, exchange to something else?
What do you think of my plan to stop making 529 contributions?
Please let me hear your thoughts and advice, thanks.
will you kind folks please help me analyze and make suggestions for my kids' 529 plans?
I have 3 sons, ages 13, 12, and 10. Expected HS grad dates 2028, 2030, and 2032.
Backstory: I have a 529 account for each child--each of these accounts has ~$60k, all in VTSAX. I recently assumed control of an additional account for each child--they were started by my in-laws, they're getting elderly and want my wife to take over, which means I need to take over.
These accounts have ~$38k each, with $30k of VTSAX and $8500 of "Vanguard Inflation-Protected Securities Portfolio", henceforth referred by me as VIPS for brevity.
This is an Active fund with an ER of 0.18%.
The VIPS portions were bought for $9000 in Feb 2022. The current balances two years later are $8500.
The 3 year return is: -1.21%
The fund return since inception in 2002: 3.5%.
My thoughts: A negative 1.2% return seems poor for the past three inflation-y years for a product called "Inflation-Protected." I am thinking about exchanging these VIPS portions for VTSAX. I am not planning on making any further 529 contributions: ~$100k per child seems like plenty with T-minus 4, 6, and 8 years til HS graduation.
What say you, dear Bogleheads? Would you leave the VIPS alone, exchange to VTSAX, exchange to something else?
What do you think of my plan to stop making 529 contributions?
Please let me hear your thoughts and advice, thanks.
Statistics: Posted by simpleidiot — Mon Jan 22, 2024 7:08 pm — Replies 2 — Views 101