Went to 100% Cash/CDs in Daughter's 529 Account

Our daughter's 529 account has already returned over 17% year to date.  17% would be a great annual return and it's only been 3 1/2 months.  At this rate, 2019 will have over a 58% return.   I don't think that's going to happen :-)     Alas, if it's too good to be true, it's probably is.

Thus, I am going to protect the gains we have to date, at the risk of missing out of further gains.   I will cash out of all mutual funds at the end of the day.  The funds will be invested in a CD paying a little over 2% for six months.  I'll decide at the end of 2019 whether to reinvest in the stock mutual fund.

Another reason for cashing out is that our daughter is a little over 4 years away from college.   If the market has a significant downturn, such as 08/09, we would lose about half of her college fund, just prior to her attending college.   That's a risk I have to avoid.

For more on Crossing Generations, check back Thursdays for a new segment.

This is not financial or education advice. Please consult a professional advisor.

Copyright © 2019 Achievement Catalyst, LLC

Why My Kids Won't Work in Californinia

California is a Liberal Nightmare.

See this example by Katie Porter a representative in Congress.

https://twitter.com/RepKatiePorter/status/1116049180902948865

Sorry, I have no sympathy for her example, who made numerous poor choices.  Where are the child support payments from the father?  Why isn't CA enforcing those payments? Why hasn't she moved from CA to a state where that pay can support her?

Finally, her math ignore all the tax credits that the taxpayer gets, such as EITC and Child Tax credit.  I expect her federal income tax is near ZERO.

I;m glad I don't live in CA.

For more on Crossing Generations  check back every Thursday  for a new segment.

This is not financial or parenting  advice. Please consult a professional advisor.

Copyright © 2019 Achievement Catalyst, LLC

Sell High

While the market was falling in late 2018, I was buying.   I even made some purchases on theday of the bottom, December 24, 2018.   Despite the recent rebound in the stock market, I'm not putting any more money into stocks.  In fact, this is probably the time to take some profits and rebalance.  Remember the Wall Street adage:   Buy low and sell high.

So I'm selling some of my holdings that I bought in late 2018.   Some stocks are up as much as 80% and some indices are up as much as 20% since I bought them, in only 3-5.   Not a bad return....

Of course, I can't do this consistently :-)   So I'm still staying invested in our core holdings, while selling mainly the peripheral holding that were purchased with the intent of trading.

For more on The Practice of Personal Finance , check back Wednesdays for a new segment.

This is not financial or investment advice. Please consult a professional advisor.

Copyright © 2019 Achievement Catalyst, LLC