Is dumping money into a 529 account that you plan to withdraw from in five years a bad idea?
I have 2 sons and started a 529 account for both this year . They are 0 and 2 years old.
Before I start heavily dumping money into the 529s, I am wondering what the best route would be to save for private school starting at 1st grade.
I live in a state where individuals are typically granted \~7k for private school and the other half is up to the parents/scholarship. I have about 500-700 a month to dump into savings for them (more for the 2 year old)—maybe 1k on a good month.
I fear that it’s too late to invest, and the risk is much higher for a shorter timespan and such an aggressive investment. I’m worried to lose the principal in the five years it will take for my two year old to get to 1st grade.
Would a savings account be better for short term private school. And lightly put money into the 529 until college?
Never invested before… I am a very financially cautious person. Maybe I am overthinking this