do l take the $5,000 & open a 529 (l have a savings acct for her $1700) should l place this amount towards a retirement acct or my child is college fund? l wanted to preserve my principal as I've losed thousands. my husbands accts add up to about the same amt. we have about $6000 in c/crd debt (will be further reduced to nil) & about $18k in savings. have a two bdrm & 1bdrm condo.

Empty the savings account of $1700, and deposit $6,700 into your child is 529 college fund. Since you are age 41, your 2yr old will be ready for college when you are 57. A ways from when you will retire. So pump money into the fund that will be used first, now. Then after you pay off your credit card, put that money into your 401k.

Cash is king! If you're in the market for the long haul l do not think I'd worry about the markets. Over the past 100 years, it is risen 8%-10% on average. l have a 401k which has taken a beating, an E-Trade account where I've put cash in for the children & continue to deduct $50 a week for their account. I've lost a lot as well, but their not going to need the cash for some 20 years, so l wait. My 401k, l have some 15 years before l draw from it. Just take care of those credit cards. Pay those down, continue to use them, pay them monthly & get out of debt. Looks like we're looking at some tight restrictions on lending in the next few years.