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I did the same thing as rad, and started moving my twins' college funds to cash when they were freshmen in high school. That was back in 2005, and by the time they started their senior year in high school in 2008, I had their full 4 years already in cash. That allowed me to sleep at night as I was more interested in having enough money for their college funding than I was in having extra and missing upside.

This was a good thing as we all know what happened in 2008. With the market in the toilet and me subsequently being unemployed from November 2009 to this past November, we were still able to fund the kids' college without missing a beat.

We also started to save for their college from before they were born, and this was our number one priority, so I wanted to be sure that we could do it. I've also always been a believer in having the money in cash that I would need in 3-5 years. I am willing to miss upside and not willing to risk the downside of not having the principal on which I am counting, so this works for me.

I intend to do the same thing with our retirement funds where I will most likely keep at least 3 years in cash or laddered bonds or CD's, and I will start moving money in that direction in another year or two as we get ready for the next phase of our life.
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