Let’s say I have money set aside in a 529 for private K-12 (and two kids currently in private K-12) and also for future college (separate 529). I could technically cash flow K-12 this year but no idea if that will be feasible next year as tuition rates might go up, DH’s business income is very unpredictable, etc. So in a way, the private K-12 529 funds function a bit like an emergency fund, to ensure we can cover K-12 tuition no matter what. For that reason, I have those funds invested very conservatively at 80/20 MM/equities.
However, I feel like maybe I’m playing it too safe because if I AM able to cover the K-12 tuition for the next couple years, then I could invest more aggressively with the longer-term college horizon in mind instead. Watching the markets go up has made me feel like I’ve given up potential college fund growth to create this K-12 safety net that I might not need (but for sure, I need our college funds to grow … we only have $25K for our HS junior which is the best we’ve been able to do while paying for private K-12).
I really don’t want to get into a private vs public school debate because our decision is faith-based and we have zero regrets about the sacrifices we’ve had to make for it. But I do want to know, financially, if I’m making a mistake with this particular “emergency fund.” I am an aggressive investor elsewhere but the 529s have made me cautious because the timeline is shorter and somewhat uncertain … I could use these funds for K-12 or for college.
I have two kids, one in middle school and the other a HS junior. If I take my 529 investments across all accounts, I’m invested around 65/35 with a mix of MM, intermediate bonds, domestic stock and international stock. Maybe this is already too aggressive?
However, I feel like maybe I’m playing it too safe because if I AM able to cover the K-12 tuition for the next couple years, then I could invest more aggressively with the longer-term college horizon in mind instead. Watching the markets go up has made me feel like I’ve given up potential college fund growth to create this K-12 safety net that I might not need (but for sure, I need our college funds to grow … we only have $25K for our HS junior which is the best we’ve been able to do while paying for private K-12).
I really don’t want to get into a private vs public school debate because our decision is faith-based and we have zero regrets about the sacrifices we’ve had to make for it. But I do want to know, financially, if I’m making a mistake with this particular “emergency fund.” I am an aggressive investor elsewhere but the 529s have made me cautious because the timeline is shorter and somewhat uncertain … I could use these funds for K-12 or for college.
I have two kids, one in middle school and the other a HS junior. If I take my 529 investments across all accounts, I’m invested around 65/35 with a mix of MM, intermediate bonds, domestic stock and international stock. Maybe this is already too aggressive?
Statistics: Posted by meadowrue — Fri Aug 23, 2024 10:05 pm — Replies 5 — Views 753