529 fund

By Terry Savage on June 17, 2020 | College Savings / Student Loans

Hi, Terry. I want to open a 529 fund for my granddaughter’s first birthday. My daughter has reservations about what higher education will look like 17 years from now. Is there a better vehicle for me to save for her future or should I stick with the 529? Thank you.

Terry Says

I think the 529 plan is still the best. Hopefully education might cost less in the future, but I don’t think the best education will ever be free (or it won’t be very good!). So keep saving for the future. Remember, the money can be used for something else by paying taxes and a 10% penalty, if there’s another urgent need.
Use your state plan, if you get a deduction on state income taxes and if the performance has been good. Check the latest performance ratings of 529 plans at www.SavingforCollege.com

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