Parents
with kids around 8 years old to
age 13 still have a long time until
they will need to take their first
withdrawal.
Those who have been investing all along will probably want to re-evaluate their needs and recalibrate their strategy.
"Has anything changed in your life? A new baby? A better-paying job? Consider these changes and recalculate your needs," says Mary McConnell, director of college savings products at Charles Schwab.
For parents playing catch-up, saving a substantial amount will require bigger contributions. The temptation to use some market momentum to buoy returns should be avoided for the most part.
While there is time now to recoup losses experienced in the market, it may be prudent to pare back risk on investments and allocate more funds toward conservative investments as your child heads into the teen years.
"There are times to take a risk and times not take a risk. The closer you get to needing the money, the less risk you need to take," says Adam Bold, author of "The Bold Truth About Investing: 10 Commandments for Building Personal Wealth."
