WSJ Your Money Briefing
What a Volatile Market Means for Your 529 Savings Plan
Apr 15, 2025
Recent market turbulence has dramatically affected college savings for many families. Experts share strategies for managing 529 plans during these volatile times. They discuss how to adjust investments based on children's ages to secure future education funds. Parents are encouraged to stay calm and make informed decisions amidst uncertainty, ensuring they can navigate financial challenges effectively. Tips for maximizing financial aid opportunities are also highlighted, offering practical advice for safeguarding educational investments.
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Quick takeaways
- Parents are advised to stay calm and focus on long-term strategies for their 529 savings despite recent market volatility.
- Investment strategies for 529 plans should differ based on a child's age, with younger children benefiting from aggressive investments and older children needing stability.
Deep dives
Managing Anxiety Around College Savings
Many parents are feeling anxious about financing college for their children due to the current instability in student loan repayment and other financial structures. To offset potential financial burdens, families are encouraged to secure their gains from 529 plans, which have experienced significant growth since their inception. However, recent market turmoil may have diminished these gains, leading to concerns among parents about their children inheriting student loan debt. Financial advisors suggest remaining calm and focusing on long-term investment strategies rather than reacting impulsively to short-term market fluctuations.
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