[quote=“jdsmith”]Well, about to start a 529 for the boy. Now for the meat for the bones…what to put in it.
I like the Vanguard small cap index, but will check to see if it is a total small cap index.
The Vanguard total international stock index looks good.
And the Goldman Sachs Real estate securities will be something I look into …
out of the 21 funds you can choose from, I like these best.
I guess great minds think alike. Our first is due in August and I’ve been looking into this after reading MT’s advice in another thread. Like you, I’ve been looking at some of the Vanguard funds. For our retirement, I don’t mind putting money into small cap index funds and other stuff that fluctuates dramatically, but I’m a bit weary of doing that with education savings. For our retirement, there’s more time for the market to pick back up if I manage to throw in at the wrong time; I can also put in a good bit more than what the education funds allow, so I can be pretty diverse from early on. For the kid’s education fund, he will need it at the end of a fixed period that’s a good bit shorter than my career will be. He’ll also need to draw most or all of it out quickly rather than over the course of a couple of decades as with retirement funds. Because of this, I think it’s good to be a little more conservative with education savings than with retirement savings. However, I’m not planning to save enough to cover all of my child’s education. Even after cuts for subsidized loans in the US, student loans are still pretty cheap. Perhaps I’m a bit old school, but I prefer for my child to have to put some of his own money into his education, even if that money is borrowed. It’s an investment that will definitely pay for itself during his career.