Ask Terry Questions 529 plan for grandchildren when who knows what college will look like in the future

529 plan for grandchildren when who knows what college will look like in the future

By Terry Savage on March 14, 2024 | College Savings / Student Loans

We are expecting our first grandchild. It was suggested to me by a financial advisor that using a 529 to save for grandchildren’s college may not be the wisest move because so many factors make the world, relative to future college, so uncertain. For example: college becoming exceedingly unaffordable overall; possibilities that, in the distant future, fewer employers will require four year (or any) college degree in favor of more on the job training; and other unknowns for a child whose potential college is 18 to 19 years away. So, In your opinion is it unwise to use a 529 for the benefit of future grandchildren?

Terry Says

I think you should start a 529 plan — on your own. If you live in Illinois go to If elsewhere go to, to find the ratings for your state’s plan. Illinois is stellar — and residents get a state income tax deduction for their contributions.

I don’t want to attribute bad motives to your advisor, but once the money is in the plan, the advisor cannot charge management fees, or commissions, on that money!

If someone told you 50 years ago not to save for the future and invest wisely, where would you be today. Tax-free growth is a great bet on the future. And under new rules if the kids don’t go to college they can go to work and roll it into a Roth IRA!!!

Could you possibly find a better advisor, who is not so negative about the future?!!

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