Personal Investments • BrightStart transition: fixed income or cash choice?

Hi, I've been happy with BrightStart 529 (recommended by smart folks here). Its Vanguard Federal Money Market portfolio fits my needs very well; with a kid already in college, I want to go with cash or money market. However, the Plan is moving to a different program management by end of September. From the transition material, it seems the new administrator will be Tiff-cref, and Vanguard Federal Money Market is no longer a choice.

Below is the comparison of Fixed Income and Cash portfolios; left side being current offerings, and right side upcoming offerings.

Can bogleheads help with a wise choice? Some factors:

• kid already in college; preserving capital is #1 priority

• seems fed is going to cut rates steadily, is going with any of those fixed-income (bonds) portfolio a really bad idea?

• this is regarding the 'High Yield Bank Savings 529 Portfolio':

  Code:

  This Portfolio is referred to as “High Yield” because the interest rate credited to the Portfolio is 0.20% higher than the Effective Federal Funds Rate in effect at any given time. 

  Does it mean the rate will be as high as 5.25% as of now?

Statistics: Posted by itworks — Sun Sep 01, 2024 8:23 pm — Replies 0 — Views 46

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