We moved to the US last year, and one kid is going next year to college, and another one in 4 years. So we have no prior college savings.
In Florida, there is a Prepaid program, where I can just pay $25k lumpsum, and get an estimated $30k for college expenses for a kid starting college next year, with only a guarantee that I can't lose money. But I have no idea if is it realistic to get 5k for one year.
Also, there are standard 529 Savings options, where I can choose between managed, partially managed, or self-managed portfolios. Since there is only one year till the first kid gets into college, those prebuilt/managed portfolios to invest in risky assets early and slowly move toward less risky don't make much sense. So I was thinking of putting everything in VIEIX, which I saw as the most aggressive option in a self-managed portfolio.
And most conservative option is to buy a 25k CD for the first kid while they are still above 5% for 18 months, as I see that rates started to drop.
I am aware that 2 x 25k is not enough but that is what I have at the moment. But I don't know how 529 college funds work. Here are my questions:
1) Can I for example choose the risky option of a self-managed plan, putting everything in VIEIX, but if timing doesn't work and I am at a loss, can I withdraw from that fund later in 3rd year of college if it recovers by then?
2) If that is not an option, can I reallocate funds to a second kid who is going to college in 4 years, hoping that the market will recover in case I am at a loss?
3) Do I have to use the Florida 529 Savings plan, or I might open a 529 account in some third-party institution where I might have other investment options, although I have no idea what would be good options for kid starting next year, and the one starting in 4 years?
Submitted February 29, 2024 at 10:49PM by ImmiTheJimmy https://ift.tt/i25gXGy
