“Our daughter did a great job in college. She did so well in her major that she got more grants each year than we planned. We have some money (almost $30,000) left over in our 529 plan for our daughter.
She graduated and started a great job in July. She’s not sure if she will need grad school or other training so we don’t know if or when she might need this money.
Under these circumstances, how should we invest this money?”
Congratulations to your daughter! And to her mom and dad!
Under these – wonderful – circumstances, you might consider investing her 529 plan funds in a balanced (stock-bond) portfolio. Some 529 plans have funds that are specifically noted as balanced funds. This would make your lives a bit easier. Other plans have stock and bond funds that are quite separate and would need to be combined to form the balanced (roughly 50% in stock funds and 50% in bond funds) portfolio you seek.
And, of course, if she doesn’t end up needing the money herself . . . can you say grandbabies?
If you have questions or comments, please send them to Gene@AskMtM.com