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We have a college fund for our grandson--
We made an intial deposit several years ago--diversified portfolio with DFA and and other low cost options
We have given them cash under the tax-free gift allowance since then because our SIL had has a rocky employment history and they used the money for things like paying for grandson's insurance (too expensive to have her insurance for the family) and his pre-school fees...
We have a good bit of cash and our investment guy is pushing us to do a 5 yr tax free gift (from both of us--so maximum tax free contribution 150K) into the 529 account
Which would mean NO tax free gifts to child for next five years from either of us...
Grandson is 6--just started kindergarten--they held him back a year because his bday is end of the summer--
So still long time before he would need to access--
I would prefer to do a smaller amount--either a 5yr gift from ONE of us which allows the other to make a cash gift directly to the grandson--and then add increments to account as we go along...there could be other contributions to the 529 from the one who didn't make the 5 yr gift also...
I guess I hesitate to buy into the market at this point (even with a diversified portfolio) because I think lot of this positive upswing is shallow and not based on real economic depth...but I know many of you believe in being invested all the time based on your risk factor...
If YOU were in this position what option would you consider to have the better outcome?
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