I don’t have a lot of money in the 529 plan. And all is in the Vanguard S&P 500 index fund (Vanguard 500 Index Option).
I am thinking, if/when the S&P 500 index bounces back to the previous high (6,147.43), I am going to start convert some of S&P 500 index fund into Vanguard High Yield Corporate Option (something similar to this, I think). I will do it in the increment of 5% or 10%.
Here is 5 year chart comparison between the two Vanguard funds (stock vs bond). And the max comparison: bond start from 05/17/85; stocks from 11/03/00.
I also googled – is there a period bond performed better than stock. And some more readings for me.
How often do bonds outperform stocks?
How Often Do Long-Term Bonds Beat Stocks?
7 Reasons Not to Use a 100% Stock Portfolio
This will be a good exercise for me in terms of withdrawing from an account: converting from stocks to cash over the time etc.
(Update 05-16-2025) I did one percent conversion today, from S&P to high yield bond fund. Was 100% S&P, after today it should be 99% S&P, 1% bond.
(05-27-2025) 98% vs 2% now
(06-18-2025) 97% vs 3% as the market close on 06-20-25. I submitted the request a bit late and didn’t make it to Wednesday’s cutoff, and Thursday 6/19 is Juneteenth holiday and no stock market in the USA.
(06-24-2025) It appears the above exchange did not happen, as I saw the below message from the account:
Exchange your assets
Your last exchange was processed on May 27, 2025. You have performed the two exchanges that are permitted in this calendar year per IRS regulations. You will be allowed to exchange again on Jan 1, 2026.