Starting a 529 plan in today’s market

i did some reading up on 529 plans, but when everyone is saying to liquidate my own investments and hold them in my retirement accounts as cash, is it smart to start seeding money into my newborn daughters 529 plan when the market is so volatile?

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A 529 is a long term game and timing the market is not really possible. The key is to start saving. Good luck!

This is the whole point of a 529 plan.  The earlier you start investing, the more time you have to accumulate shares through all the gyrations of the market that might happen in the next 15-20 years.  When the market declines, try your best to just view that as an opportunity to accumulate greater numbers of shares.  Also, if you think you might panic, choose an all in one fund that is timed to your child's age and automatically rebalances towards a less conservative asset mix as she/he gets older.   

Oh the market is so volatile! I am losing my mind every day checking my retirement savings. That said, I would not delay starting a 529. The market is volatile, but it is inching up. Just start putting about $30 per month in the 529; seriously that is coffee money for many people. Over time it will grow more than you expect, even for us, surviving and rebounding from the 2009-2010 recession. My daughter will be starting college in the fall, and just by contributing about $2,000/year since she was young, her first two years of college/dorms will be completely covered.

I’m not sure why you wouldn’t. You’ll be drawing the funds 18 yrs from now. By that time any current market volatility will have little bearing, it seems, compared to your alternatives. You’re not going to just hold cash in a bond or money market, would you?

I think it’s a wonderful and prudent idea to start funding your newborn’s college fund. It’s never too early. The 529 plans have a large variety of funds with varying risk. You can choose how aggressive or conservative you want it to be. I find Vanguard to be the best - lowest expense ratios with the highest returns. They have some funds that outperform actively managed funds from other financial institutions. We opened a Vanguard 539 with the state of Nevada because it had the best rates and returns.