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Investing for life events

Is it worth investing in a 529 plan in uncertain markets?

2 minute read
  •  
December 06, 2023
Investing for life events
Saving for children
Education
529 Education savings plans
Page
Article
Investor goals
College
Education savings
Investing
Market volatility

Families are doing their best to save for education, even in today's uncertain markets. While it's been a year of ups and downs, it's also been a good reminder of what—and who—really matters. For more than 45 years, Vanguard has helped investors stay the course, no matter what the markets are doing. And here's more good news: It's always worth investing in the next generation, and a 529 plan makes it easy for friends and family to contribute during the gifting season or anytime of the year.

Uncertain markets can bring opportunity

Approaching year-end in uncertain markets might feel discouraging. But with the right perspective, you can find an upside, especially when it comes to saving for education. Opening a 529 account and contributing consistently when the markets are uncertain has the potential to result in greater returns as the markets recover. By staying invested instead of pulling back, you won't miss out on market recoveries.

If you decide to open a 529 account, consider making automatic contributions. It's a great way to give your loved one the best chance of reaching their education goals. So be patient, stay disciplined, and remember that you've got this.

It's not all on you to save for their education

Friends and family might be more interested in meaningful gifts, like 529 contributions, during uncertain markets. It's a gift with a lasting impact that the recipient won't outgrow. Ugift® makes it easy for account owners to partner with loved ones who want to help give the next generation an opportunity to attend college or trade school.  

Every Vanguard 529 Plan account comes with a unique Ugift code that makes it possible for anyone to contribute. You can even harness the power of crowdsourcing through social media or word of mouth, and you may be surprised by the response. They can contribute through ugift529.com or by enclosing a personal check in your holiday card this season. 

It's always a good time to invest in the next generation

From trade schools to traditional colleges and universities, 529s are flexible enough to accommodate a variety of educational paths. So you can rest assured that, when they're ready, your future student will have options.  

For nearly 25 years, Vanguard has been helping families use 529 plans to prepare for higher education. Choosing a 529 provider is a big decision, and your state's plan could offer additional tax benefits. Take a look at our decision tree for guidance on picking the path that's right for you.

330,000+ families use The Vanguard 529 to save for more than half a million futures.

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All investing is subject to risk, including the possible loss of the money you invest.

For more information about The Vanguard 529 College Savings Plan, obtain a Program Description (PDF), which includes investment objectives, risks, charges, expenses, and other information; read and consider it carefully before investing. Vanguard Marketing Corporation, Distributor.

For more information about any 529 savings plan, contact the plan provider to obtain a Program Description, which includes investment objectives, risks, charges, expenses, and other information; read and consider it carefully before investing. If you are not a taxpayer of the state offering the plan, consider before investing whether your or the designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program. Other state benefits may include financial aid, scholarship funds, and protection from creditors. Vanguard Marketing Corporation serves as distributor for some 529 plans.

The Vanguard 529 College Savings Plan is a Nevada Trust administered by the office of the Nevada State Treasurer.

The Vanguard Group, Inc., serves as the Investment Manager for The Vanguard 529 College Savings Plan and through its affiliate, Vanguard Marketing Corporation, markets and distributes the Plan. Ascensus Broker Dealer Services, LLC, serves as Program Manager and has overall responsibility for the day-to-day operations. The Plan's portfolios, although they invest in Vanguard mutual funds, are not mutual funds. Investment returns are not guaranteed, and you could lose money by investing in the Plan.

If you are not a Nevada taxpayer, consider before investing whether your or the designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program. Other state benefits may include financial aid, scholarship funds, and protection from creditors.

Ugift is a registered service mark of Ascensus Broker Dealer Services, LLC.