In times of volatility, it may be tempting to stop making contributions or turn off automatic payments. However, market downturns may also lead to cheaper share prices that could grow when the market rebounds.

Since 529 plans have a limited timeframe for growth, contributing consistently and staying the course during a downturn helps ensure that long-term plans remain intact. While volatility can be difficult to endure, it’s impossible to tell when the market will resume its upward course, and history shows that missing just a few of the market’s best days can lead to lower overall returns. So, sticking around means participating in the recovery as soon as it begins, rather than waiting to see improvement and missing the early stages of recovery.

Even if college is right around the corner, age-based 529 portfolios are designed to automatically adjust the asset allocation as the beneficiary gets closer to college age, helping to balance risk and return. This gradual shift from more aggressive investments to conservative ones aims to help preserve the accumulated savings while still allowing for growth.

When the market experiences ups and downs, it’s important to stay focused on the long term and avoid panic selling. By maintaining a steady approach, you can better navigate the uncertainties and focus on future growth. It is also important to continue to stay informed and monitor your investments in the Plan so you can make the appropriate decision based on your individual circumstances.