529 Plan Comparison
April 27th, 2007
Question: I need help choosing between 529 college savings plan or buying savings bonds. Differences?
i want a comparison of the advantages and disadvantages of each. I’m expecting a son this fall and I want to make a wise decision for his future.
well i don’t really know about any kind of investment opportunities…i decided to start my research here because real people are more helpful than google. i’m open to any kinds of options. my parents never did anything like this for me, so i’d like to get an early jump on it.
Answer: Hate to be negative here but
Savings bonds are paying nothing
Remember there are many downsides to 529′s.
Make sure you know what you are getting into.
Some prefer to pay off all debt, including cars, mortgages, and invest full in 401K’s and roth accounts.
After all, your son can get plenty of financial aid.
But there are no loans for your retirement
Worst thing about 529′s. The amount directly reduces the amount he can qualify for in student loans and grants.
Also if he gets full scholarships, you lose out.
What if he joins the circus, again penalty.
What if you move out of state?
I’ve got to stop. Not a fan of 529′s
Your Roth money can be used for education
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