InVesting In Virginia 529

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HokieWanKenobi
Posts: 1
Joined: Thu Aug 09, 2018 2:35 pm

InVesting In Virginia 529

Post by HokieWanKenobi » Thu Aug 09, 2018 2:49 pm

Hi everybody, new to the forum (posting at least) but have read the two Bogleheads books so I get the concepts. I'm looking for a little help with my children's 529 plans. They are currently 5 and 6 and are enrolling in Kindergarten and 1st Grade this coming school year. Here's what we currently have invested for them with Edward Jones in a portfolio of American Funds (I know, I know). They're performing fairly well, but I'm wanting to move over to the DIY side of the Virginia 529 plans (InVest).

Five Year Old - $17K
Six Year Old - $26K

We currently contribute $175 per month automatically and add some lump sums here and there, but the majority of our contribution comes from the monthly addition. Our plan is to pay for a portion of their education but for them to have some skin in the game as well. My question is this, which funds would you recommend and in what percentages? At what point would you start transitioning into less risky funds and how would you recommend doing so? Please be specific.

Here is the InVest website that has all the available funds. https://www.virginia529.com/resources/performance/

Thanks for the help.

megabad
Posts: 387
Joined: Fri Jun 01, 2018 4:00 pm

Re: InVesting In Virginia 529

Post by megabad » Thu Aug 09, 2018 5:54 pm

HokieWanKenobi wrote:
Thu Aug 09, 2018 2:49 pm
Hi everybody, new to the forum (posting at least) but have read the two Bogleheads books so I get the concepts. I'm looking for a little help with my children's 529 plans. They are currently 5 and 6 and are enrolling in Kindergarten and 1st Grade this coming school year. Here's what we currently have invested for them with Edward Jones in a portfolio of American Funds (I know, I know). They're performing fairly well, but I'm wanting to move over to the DIY side of the Virginia 529 plans (InVest).

Five Year Old - $17K
Six Year Old - $26K

We currently contribute $175 per month automatically and add some lump sums here and there, but the majority of our contribution comes from the monthly addition. Our plan is to pay for a portion of their education but for them to have some skin in the game as well. My question is this, which funds would you recommend and in what percentages? At what point would you start transitioning into less risky funds and how would you recommend doing so? Please be specific.

Here is the InVest website that has all the available funds. https://www.virginia529.com/resources/performance/

Thanks for the help.
If it were me, in VA I would use Aggressive growth until age 8, then switch to Moderate Growth. When he or she is freshman at high school, at about age 14, I would switch to Conservative Income. You may want to go even more conservative as they enter college (FDIC insured account or TIPs), but that will depend on how long their stint will be and that is hard to determine at 5 or 6 for most parents. Just my thoughts, your risk tolerance may be different. I do not like the age based funds in VA because they are somewhat high expense and they have a zillion asset classes.

donaldfair71
Posts: 305
Joined: Wed Mar 06, 2013 4:15 pm

Re: InVesting In Virginia 529

Post by donaldfair71 » Thu Aug 09, 2018 6:15 pm

Aggressive growth is what I use for my daughter's account. She is going into 1st grade. Once it gets to about 10k (probably a few years out) I'm gonna go diy and break it up into Pieces for savings but until then any all in one is fine.

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