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We have a 18 year old daughter that is a senior in High School. Part of her College fund is in Mutual Funds. AGAAX, EVSEX, FRGUX, PNOPX, SSRAX. They are currently about 14% down. We have about Two years of college funds in a liquid account(Savings paying 5%).

When should we start moving funds from the mutual funds to a liquid account?

There may be a grandparent $10,000 Gift in 2001.
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I think that part of the answer is your ability (financial as well as mental) to handle a possible loss of money between now and the last 2 years of college. There is no way to predict how well the funds will do between now and then. Personally, I plan to wait and take money out of mutual funds for my sons when I need them.
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When should we start moving funds from the mutual funds to a liquid account? </I.

Depends on how well you handle risk and how much you need all the money.

We have about Two years of college funds in a liquid account(Savings paying 5%).

You can definitely do better with this. I suggest using bankrate.com to find the very best CD rates and key the maturation of the CDs to when the bills will be due. You may want to check on the bursar's webpage for the colleges your daughter is considering because the bill due dates vary from almost a month before a semester starts to a week or so after the beginning of classes,depending on the college.

Jacki


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Well, if it was my kid going off to get drunk in college like most kids do their first year I would not risk that money in the market at all. Now is not the time to get brave and try to be a hero with your kids beer money.

Money markets at most brokerages are yielding 6+ percent without the committment of a CD, plus you get check writing.

conventional wisdom is if you need the money in the next 3 years stay away from the stock market.

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