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ramsysolutions.com slash smartvester. Tammy is up next in Detroit. What's going on, Tammy? How can we

help today? Hi, thanks for taking me call. I have a question in regards to kids after the graduates, so the turn 18.

My husband and I are in steps four, five, and six.

We've been kind of saving for the kids' college fund for the past probably three to six months.

So we do have some funds right now. In those accounts, I have

an eight-year-old and a five-year-old. We did start a five-29 for our eight-year-old, but kind

of looking at the way we're investing, I would kind of like to hone in on what we're doing

and what our plan is. My question is if we should fully invest everything in a 529

because our fear is that we do that

and one or both of the kids end up not wanting to go to college

or wanting to do something else.

And then we have all of that money tied up in a 529 that we're going to get penalized for taking it out outside of a college plan. Sure. So my thought was if I, we did half in a $529 for each of them and then half in a mutual fund, even though I know those are going to be like the mutual fund is going to be taxed. Yeah. If we, you know, take that out later on. Yeah. It's kind of like a safe bet, though, to not put all of our eggs in one basket. Totally. No, I hear you. And we, you know, I would say, my husband and I were, we have the same discussion. You know what I mean? Because you're like, college has shifted so much. even since COVID, you're like, oh my gosh, and the fact that tuition's, I don't know, it's just, it's an interesting time.

And when our kids go to school, I mean, that's in, mean because you're like college has shifted so much even since COVID you're like oh my gosh and the fact

that tuition's I don't know it's just it's an interesting time and when our kids go to school I mean

that's in a decade or more um so it's kind of that big question mark and so I'll tell you what we're

doing Tammy that very similarly yeah we're still funding the 529 um because we our plan is that they

we I want them to go to college college and if we're able to pay for

that that's a gift to them starting off because I just think from 18 to 21 you know and all the

person I always have a little bit of a different opinion about the college thing king Coleman

has kind of a different one but I just think it's a great step. I really do. If you're able to,

because I think you learn a lot about yourself. I think that you getting a degree makes you marketable, all the things, if you're able to pay for it, I mean, really. But if that fear is still there, if you want to, you could slow down the 529, depend on a mutual fund, but just know you're going to be paying those taxes. It does not have as good of a benefit. But if you guys get five years down the line and you're like, oh, wow, they are going to go to school. You can throw more in. Yeah. And you can roll over, you know, up to 35K with the new Secure Act 2.0 from that 529 over to a Roth IRA over a period of time. So you're not out of luck.

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