I'm looking for advice on where a college age child should keep an investment just before they begin college and during the college years.
A year ago I was nervous about leaving my daughter's entire college investment in a more volatile fund with college looming 1 1/2 years away. So, I moved the entire $37K from VEXAX (Vanguard Extended Market Index) to VASIX (Vanguard LifeStrategy Income Fund). This resulted in owing about $2K Federal and State tax, and after making a conservative $1.5 K during the year, this leaves just over $36K in VASIX. Considering that this money will now be used in the next 4 1/2 years for college expenses, what advice is there for where the money should be invested during this time?
I also have 2 younger kids (2 and 4 years younger) with a college savings. I left their entire investment in VEXAX and of course they have surpassed my oldest daughter in total savings. Now I feel like a fool and hope someone can help.