April 1, 2020

Saving for College in a Time of Market Uncertainty

When the stock market experiences a sharp drop and the opportunity for gain becomes uncertain, even 529 investors can experience some level of anxiety. You naturally want to attempt to mitigate your risk of further market losses. The key is to stay calm.

Since any long-term investment is likely to experience market ups and downs, it’s important to maintain perspective. Here are some tips to help you weather shifts in market cycles:

1. Let the time frame you plan to use your education savings, along with your specific risk tolerance, guide your investment choices. Future Scholar’s age based and target-allocation options help you mitigate risk and pursue stability when markets shift.

2. Stay focused on the big picture. Investors can benefit over the long term by staying invested. After all, the Great Recession of 2008-2009 ultimately yielded the longest bull market in U.S. history.

3. If you are enrolled in the age based option, remember that as enrollment to college draws nearer, the mix of investments in your account automatically shifts from more aggressive equities to more conservative fixed-income and money market mutual funds.

4. Before you make any shifts in your investment strategy, consider consulting a financial expert to help you make informed decisions.

For more information, please visit us at futurescholar.com.