For natural worriers like me, when there’s a threat to our well-being, our go-to emotion is panic. So I understand why people are fleeing equities now that the stock market is having some of its worst days in history.
However, you can’t let your feelings drive your financial decisions. It’s okay to feel what you feel, but please pause before you make a move.
I’m glad readers are reaching out for advice. This week, I received an email from a Maryland couple investing in a 529 college-savings plan. Their son is graduating from high school in a little over a year and will be applying to out-of-state schools, mostly in the $60,000- to $70,000-a-year retail range.
A 529 savings plan allows your contributions to grow tax-free. If the funds are used for qualified educational expenses, earnings are not taxed at the federal or, in most cases, state level.
“We had saved about $150,000 in a 529 account before the coronavirus outbreak sent markets tumbling,” the mother wrote. “We…