Photo by Daniele Levis Pelusi on Unsplash

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.

Photo by Marek Piwnicki on Unsplash

I started blogging at OchoSinCoche in Fall 2019 during an extended, 12-week family trip to Spain. During the previous three years, I’ve learned a ton. I’ve also come to the conclusion that it’s time for some change.

But first, what have I learned?

Photo by Marek Piwnicki on Unsplash

The last few months have been hectic and I haven’t had as much time to blog as I’ve wanted. I filed my 2021 taxes in April, but writing a blog post about it took a back seat to finishing my book on 529s. While it’s a few months late, I felt like it was still important to share what I learned. As with every tax year, I learned a lot, including from some mistakes I made.

Photo by Avel Chuklanov on Unsplash

My second child starts her freshman year at college in a few weeks. As part of preparing her for college, we ordered her laptop this week. I’m picking up much of the tuition tab and a significant portion of their housing, but I expect my kids to purchase their own laptop. By owning the purchase, they have maximum skin in the game, both in buying one that’s appropriate for their needs and later, as they take care to avoid damage.

Photo by Ryan Schroeder on Unsplash

Imagine a student with a full tuition scholarship and enough grants and private scholarships to cover 100% of room and board expenses. You might think that a 529 can't help this student or their parents.

You'd be wrong.