Only child is in grad school. Nobody else would ever be going to college, except her potential future children.
She Inherited some $ from deceased grandmother; cashed in some and put in "high" yield savings; rest in stocks and bonds. I also own 529 with daughter as beneficiary. Had about the right amount in various savings formats to pay for grad school. Now that Covid has wreaked havoc on investments, of both cash and investments for grad school., am considering options.
- Better to take out loan now, pay interest, use for $12K summer tuitions, and pay off loan with 529 funds in 1.5 years at the end of grad school when market has recovered? Both she and I as a co-signer, have excellent credit.
- Better to use 529 now to pay $12K summer tuition?
- Better to use cash now to pay $12K summer tuition?
Obviously nobody has a crystal ball. Market may not recover, market may get worse. We decided to cash some of the inheritance to "protect" its market value back when market was good.
Next, is there any advantage to taking the inherited stocks/bonds out of her brokerage account and have her give it to me, and I put into the 529 for her benefit? Theoretically could grow there and growth used for QHEE would not be taxed.