Should I keep automatic withdrawals for my children's 529 college savings plans, or manually invest every month on down days to avoid buying in automatically on a day when it could be up?

I'm a long-term investor. I buy into my Roth IRA account on down days. I plan on buying and holding into these accounts until I retire: 401(k), Roth IRA and my children's college savings plans (529 plans). I have automatic withdrawals set up for the children's 529 college savings plans. Is it wise to keep automatic withdrawals? Or should I invest manually into my children's 529 account on a down day every month to avoid buying in automatically on a day when it could be up?

College Tuition, Financial Planning, Retirement, Investing, 401(k), IRAs
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3 weeks ago
75% of people found this answer helpful

I see buying on down days as an added plus to portfolios over the long run, but only when we see big market fluctuations. We never know when these will happen and they can be quite sporadic. This is a very difficult long-term strategy to be successful at. Instead, you should take advantage of compounding interest and dollar-cost averaging by buying into the market on a regular, preferably monthly, basis. Dollar-cost averaging smooths out volatility by allowing your to buy in at various different price points over time. The regular contributions continue to add to the principal, thereby fueling the compounding of returns. Sticking with your automatic contributions is definitely your best bet for success as a long-term investor. 

3 weeks ago
3 weeks ago