My second oldest started her freshman year this fall. In January, when I realized I was going to be a little short on her 529, I made some last minute contributions to start catching up.
Then the market dropped. And kept dropping throughout the spring, summer and fall.
Stocks and bonds have both taken a beating this year. As of today (10/22/2022), the S&P 500 is down 22%, year to date. Bonds are also down, with Vanguard’s Total Bond Market Index Fund ETF (BND) down nearly 15%.
To date, my daughter’s 529 has lost 14% of its value. However, I'm not sweating it.
If you’re using a 529 to pay for college this fall, Here are some strategies that you can use to lessen the impact of a bear market.