529 Plan and College Savings

Question: Should I invest in a college savings plan or pay back my mortgage early ?

My wife and I have 2 young children (2 and 4), we live in California and our income is around 200k/year. We owe $700k on our mortgage (rate: 6.25%, 30 year fixed) and we try to contribute the maximum to our 401ks.

what if we can save an extra $10k or $20k next year ?

should we invest them in a college savings plan (529) or should we try to reimburse our mortgage early?

I’m mostly interested in the tax benefits of these 2 approaches.

Thanks,
Al

Answer: pay off the mortagage!!!

Dave Ramsey on the 529 Plan

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