Reply to How many here do not have a 529 savings account, on purpose?

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[quote=Anonymous]I would not say I am particularly educated about 529s but I will just share why we decided to go the 529 route even though we knew we would likely be moving often.

We have moved states several times (4 states for my oldest dc) and we still decided to do 529s. We have them in our home state of NY. We have since lived in NH (no income tax), MO (has parity), and VA (for just a year). Even without any state tax advantages, though, the 529 still grows tax free, and (approved) use of the funds is tax free. That is really quite a benefit.

I feel like people like the idea of a brokerage because of "freedom" and "flexibility" but you will have to put in a lot of time and work to make a different investment vehicle do matter than a 529, especially with capital gains taxes. Unless you are really worried about stranded funds in the 529,  I don't know why you wouldn't pick a 529. (FWIW, my youngest has a disability, so we just moved his money to an ABLE account once he was diagnosed, in case college won't be in the cards for him.)

Another benefit of 529s- my parents put in 2K /grandkid each year. I don't think they would be as keen to give us 6K a year for the mortgage of our investment property or contribution to our brokerage account.[/quote]

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