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529 Plans - The Bad

November 8th, 2010 at 04:58 pm

10 Things 529 Providers Won't Tell You


Hmmmm, and I can't help but feel this list is incomplete. I read recently that 529 plans were very restrictive in how much often you can buy/sell funds within the plan. (I do not know if this applies to ALL 529 plans, but the article I read seemed to hint that it did).

I recently said in the forums, that to point out the flaws of 529 plans used to be "blasphame," but lately, there is more media about the downsides.


Not to say 529 plans don't have their place. I just think they generally have their place with wealth planning and higher net worth individuals.

I don't think the average person understands all the pitfalls, that is for sure. So I like seeing more of these articles.


BTW, #4 is just plain stupid. Something like, "Save $100k and lose $5k of financial aid." Rolleyes Do you need $5k of financial aid if you saved up $100k for college?

But, I think #4 pointed out some other good things that most people don't understand about financial aid considerations.

1 Responses to “529 Plans - The Bad”

  1. Single Guy Says:

    Perhaps its because I am not in the situation where I would even want to use a 529 plan, but even at the beginning I had serious doubts about the usefulness of this saving strategy, and this article hit on my concerns and a few extras. Saving = good, but saving in 529 = adding risk for little benefit (IMO).

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