Knowing that we would have to cash flow up to two years of the cost of attendance, we gambled and continued with an aggressive asset allocation with the assumption that if the market dropped, we could use the 529 to fund the last couple of years of school and cash flow the early years during the down market. There are a few other nuances to our approach/strategy, but essentially the aforementioned approach is what we did. We withdrew from the 529 for the first year and paid out of cash flow for the middle few terms and recently went to essentially a money market fund to ensure the final terms/costs are protected since there will not be much time for the market to recover if there is a drop. At this point, the 529 should fund the rest of undergrad.
Yes, this is a bit of market timing but we were comfortable paying out of cash flow for the shortfall if we ran into a lengthy market downturn. The risk taking probably covered a term or two.
Yes, this is a bit of market timing but we were comfortable paying out of cash flow for the shortfall if we ran into a lengthy market downturn. The risk taking probably covered a term or two.
Statistics: Posted by HopeToGolf — Tue Feb 11, 2025 7:28 pm