Saving for College in a Turbulent Market
published August 8, 2024
When markets get rocky, it's tempting to act quickly. But it's important to keep in mind that the nature of markets is to move up and down over the short term. Trying to time the market is extremely difficult, potentially risky, and can be stressful even for very experienced investors.
One strategy to deal with the inevitability of turbulent markets over time is to invest in equal amounts, at regular intervals, regardless of the ups and downs in the market. This investment strategy, often called dollar-cost averaging, can be particularly useful in a long-term investment strategy, like saving for your retirement or saving for your child’s higher education.
Utilizing a dollar-cost averaging strategy may help you to minimize the stress of investing in unpredictable or volatile markets. Rather than keeping your cash on the side lines while saving up to make a lump sum investment, consistently investing smaller amounts of money over time without trying to time the market or making emotional investment decisions, can give your investments the opportunity to benefit from regular market growth over the long term.
So, if you’ve been thinking about saving for your child’s post-secondary education, or if you are already saving, you may be surprised to learn that despite the turbulent market, now can be the ideal time to start or continue investing.
Don’t let the market’s unpredictability delay you from investing in your child’s future. Opening and contributing to an Edvest 529 account with recurring contributions – even in small amounts – can potentially add up to big savings down the road and eliminate the need to try to time the market just right.
###
To learn more about Wisconsin's Edvest 529 College Savings Plan, its investment objectives, risks, charges and expenses see the Plan Description at Edvest.com before investing. Read it carefully. Investments in the Plan are neither insured nor guaranteed and there is the risk of investment loss. Prior to investing, check with your home state to learn if it offers tax or other benefits such as financial aid, scholarship funds or protection from creditors for investing in its own 529 plan. Consult your legal or tax professional for tax advice. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, distributor and underwriter for the Edvest 529 College Savings Plan.
Footnotes
- 1This is a hypothetical example for illustrative purposes only and is not intended to predict or project performance of any account. Does not include any withdrawals, fees, or taxes that would reduce performance. Actual results will vary. Dollar cost averaging does not ensure a profit or protect against loss in declining markets. Because such a strategy involves periodic investment, you should consider your financial ability and willingness to continue purchases through periods of low-price levels.↩
- Neither TIAA-CREF Tuition Financing, Inc., nor its affiliates, are responsible for the content found on any external website links contained herein.
FGN-3772631PR-E0824W
More to explore
-
Explore our plan
Learn more about eligibility and all the qualifying expenses an Edvest 529 account can cover.
How our 529 works -
Compare investment portfolios
We make it easy to choose investment portfolios that fit your financial needs and savings goals.
Discover your options -
Ready to get started?
Open an Account