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.
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