Anonymous wrote:
Anonymous wrote:Another advantage — unfortunately something I saw up close — is that money in 529s can’t be easily grabbed in contentious divorce. So, if you fund early in life, it protects against a parent who may develop mental illness or go off the rails.
I saw this with a friend, whose husband (who was stable and productive when the kids were born) went off the rails in mid-life. He decided he didn’t want to pay for the education of kids at all any more and they could go to community college. This is after telling them for years college was important. Having money pre-allocated in 529s infuriated him, but he could not take the money from his kids and they were able to go to college. He refused to contribute at all, but they went anyhow. They hate him, and it was emotionally hard, but at least they got to college.
Wow good point.
Similarly, the disadvantage of having a 529 is financial aid eligibility in case a student loses a parent or there is a sharp decrease in income for any reason, or in case the student chooses not to attend college . This is why we never bothered to have a 529.
I think of 529 as something people should have if they paid off their mortgage, have ample retirement savings, and are looking for another savings vehicle knowing they will never be eligible for college financial aid no matter what.
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