News for hackers. Stuff that matters.

A comment on $130B wiped off crypto markets in 24 hours. Parent comment

Re:$130B wiped off crypto markets in 24 hours by ajross on Monday January 24, 2022 @09:50AM (#30058254)
Tough love: if you are currently making needed payments out of an account invested primarily in volatile assets, you have invested it incorrectly. More likely you left the 529 money in stocks because it's a tax shelter, not because you were actually setting that money aside for tuition.

It's the same point above: this is what markets do. Investment strategies are risk management strategies. You can't just dump money into whatever is going up right now and then complain when it goes down.

[ Parent | on HN ]
Re:$130B wiped off crypto markets in 24 hours by fullstop on Monday January 24, 2022 @09:58AM (#30058358)
> Tough love: if you are currently making needed payments out of an account invested primarily in volatile assets, you have invested it incorrectly. More likely you left the 529 money in stocks because it's a tax shelter, not because you were actually setting that money aside for tuition.

Not exactly, so I'm not down 9% in my 529. I set target dates and my financial institution has shifted them to more stable assets based on that. I just checked and it's only 19% stocks.

As an aside, using a 529 for a tax shelter wouldn't work very well because of the penalties incurred if it is not used for education. 100% of the funds I have saved here are for tuition purposes -- I started doing this years before we had children.

[ Parent | on HN ]