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What to do w- daughter college fund

Ok, In Sept hubby and I decided to start a college fund for our daughter. We chose a low risk fund and started it with 1000. Since then we have put an additional 750 in it, we have a monthly direst debit into it for 325. We got our quarterly statement yesterday and her fund has only gained 12.79 and LOST 330.74, so it's now down from 1750 ot 1432.05. Susie Ormond was saying on Oprah the other day if it's going to be more than 10yrs before you need the money to lesve it in investment but take it out if you need it before then. My concern is that this is my daughters college fund and was supposed to be a LOW RISK fund. I don't care to make money off the market, we just wanted a safe way to store our daughters money. Hubby and I are both thinking of pulling it out and just putting it in a regualr savings. Does anyone have any other ideas we can do with her money. We don't want it to be available until she's 18.

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SMWOODS

Asked by SMWOODS at 12:08 PM on Jan. 13, 2009 in Money & Work

Level 9 (363 Credits)
Answers (1)
  • I'd recommend leaving it in there if she doesn't need it soon. The market will turn around and those loses will be gains. If you pull the money out now, you will have losses and penalites depending on the fund. If you prefer, open an ING account that has a high interest. YOu will not lose any money that way, only get small amounts of interest. YOu can set it up in dd name or have her as the beneficiary and then transfer the money to her once she is 18. Another option is savings bonds. I have a florida prepaid fund set up for my dd. On my end, I just pay in a certain amount in total and she's covered. Not sure if your state has one of those.
    Anonymous

    Answer by Anonymous at 12:12 PM on Jan. 13, 2009

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