April 9, 2025 - 21:44
If you have an education savings account and a kid heading to college, you may be hesitant to check your balance. The recent downturn in the market has left many parents feeling anxious about their investment in a 529 plan. However, it’s crucial to remember that market fluctuations are a natural part of investing, especially for long-term goals like education.
Instead of panicking, focus on the fundamentals of managing your education savings. First, assess your investment strategy. Diversification can help mitigate risks, so consider spreading your investments across various asset classes. If you haven't already, consult with a financial advisor who specializes in education savings to ensure your portfolio aligns with your risk tolerance and time horizon.
Additionally, consider making regular contributions, even during market downturns. Dollar-cost averaging can help you take advantage of lower prices and build your savings over time. Lastly, keep in mind that education is a long-term investment, and staying the course can often yield positive results in the long run.
