May 2024 Monthly Recap
Market Snapshot
*As of 05/31/2024
By the Numbers
  • There were 16.1 million 529 college savings accounts as of June, 2023 (last data available)
  • These accounts hold $432 billion in assets
  • The average cost of college in the United States is $38,270 per student per year, including books, supplies, and daily living expenses
Dow Breaks 40,000 but still watching Fed

The Dow Jones Industrial Average, a widely watched basket of 30 stocks, broke 40,000 for the first time ever in May. It has since receded back below 40,000 but this helps us reinforce our thinking, which has become admittedly monotonous these past few months: stock and bond markets are seeking growth but remain ultimately held hostage by Federal Reserve interest rate policy.

With unemployment steadily below 4% and optimism surging over technology innovations the markets continue to claw their way to new highs. Regardless of timing, the Fed will be lowering the Fed Funds rate at some point which should benefit bonds and dividend-producing securities. If done in an orderly fashion this should be a boon to stocks as well. We will continue to monitor this closely.

College Saving Update – 529 Plans now allow Roth conversions

529 plans have long been trusted for saving for higher education expenses. With the passing of recent legislation, new possibilities have opened. The SECURE Act 2.0 presents an excellent opportunity to optimize education savings and retirement planning. By leveraging the expanded options available through 529 plan rollovers, beneficiaries have additional options for unused funding. Starting this year, beneficiaries of 529 accounts will have the option to make tax-free and penalty free rollovers up to a maximum of $35,000 over the course of their lifetime into a Roth IRA.

To learn more about the most effective ways to leverage a 529 plan please check out our recent insight post.

Despite the higher costs of education the benefits are measurable
Sources: Clearnomics, Bureau of Labor Statistics
© 2024 Clearnomics, Inc.

The views expressed represent the opinions of Tiller Private Wealth as of the date noted and are subject to change. These views are not intended as a forecast, a guarantee of future results, investment recommendation, or an offer to buy or sell any securities. The information provided is of a general nature and should not be construed as investment advice or to provide any investment, tax, financial or legal advice or service to any person. The information contained has been compiled from sources deemed reliable, yet accuracy is not guaranteed. 

Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website. Past performance is not a guarantee of future results.

The market indices discussed are unmanaged. Investors cannot directly invest in unmanaged indices.

The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The market index is unmanaged.

The NASDAQ Composite Index is an unmanaged, market-weighted index of all over the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System.

The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

Data sources: Clearnomics, YCharts, BankRate, EducationalData.org, Bureau of Economic Analysis, US Federal Reserve.