My kids' 529 plans are losing money each month. Should I change my investments or stop investing for a while?

I think you should keep investing! over time, money that's steadily invested into the stock market has historically always done well. besides -- if you invest more *now*, you'll have a lower cost basis for the money you're contributing. no time is better to put money into the stock market then when it's at a low point. now if i could go back in time and suggest you waited to invest money a few months ago... ;)

in my opinion, you should never change your savings behavior based on the ups and downs of the market

Send me an email at SAYALA18@AOL.COM. I can give you some great advise on this topic.

If your kids are young, I'd leave things alone for now. The account will likely grow as predicted by the time you need the money. If your kids will be heading to college next year, you might want to change your options to be more conservative to preserve what you have now.

I agree that continuing to SAVE is the right move, to fund college education at all (the money doesn't go far...we have one in college, and one child a year away from entering). I would NOT keep putting money into a 529 plan that is losing value every month. Am not an expert on all the tax benefits, etc. but in the short run wouldn't it be better to earn something, even if taxable, in a conservative Bank CD, say, then to see your savings declining in value?  We are dedicated to putting away  hundreds of dollars to save a month (which is not alot), but its time to pay attention to where these funds are invested and what is happening to their value, unless you have at least 7 more years (maybe 8-- I think we need a new FDR to turn things around in the good ole USA) to wait while things "stabilize" (i.e. start to reclaim the value they have lost), and then begin to get healthy again.  This is like '29 all over again...but the last thing we need is for everyone to run to their banks and withdraw the money (causing a true collapse). We're not there and shouldn't go there!!

No you should not stop investing in these accounts for your children. I would recommend that you increase your investment. You should contribute as much as you can afford to and buy at these low prices. The markets will rebound eventually and you will be happy with the result. Never look at the short term changes to your accounts, this is a long term investment and the markets will swing up and down at times.

YES to continued savings for children, but NO to stock plans as being the best/only way to achieve the goal.  Some of the crap that has been put together on Wall St. and sold as "securities" shows the boundless imagination of those who have confused "securities investments" with casino gambling.  The unregulated stock and securities business is in a mess of their own creation. I'd be wary of these instruments until/unless someone can really explain in detail to you WHAT your money is buying, and avoiding those instruments with big risk or where even the economists say no one knows the true value of some of these very arcane funds that have been set up to "spread the risk" which were supposedly safe, but are not. Stick to the basics, and instruments and investments that you can understand and can be explained in clear English.

first of all 529 plans is a college funds. If your children decided not to go to school, the money will not be refunded unless you yourself goes to school. The best way to look at it it to invest it into something that your money grows in and are able to use it into anything just in case the kids decided not to go. Need further info. email me @eignacio@ft.newyorklife.com

Emile has hit the nail sqaurely on the head.  529s are designed to be for college only.  Actually, now is the best time in the last 25 years to invest.  I suggest that rather than a 529, you put money away for your kids' education in a mutual fund that has held up during these time of economic strife.  The economy is sure to recover and, as it does, watch your investments grow.