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College and University Discussion
Reply to "Independent 529 plan"
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[quote=Anonymous]Prepaid tuition comes down to a bet that the increase in college tuition will outpace returns on alternate investments. I have wrestled with the same question. I'm not confident that returns on stocks will be high in the coming 10 years (indicators suggest <2% annual). If tuition will increase faster than this, then it would make more sense to prepay tuition, though there are some reasons to think that tuition increases might moderate too. After you have decided on whether to prepay, then you can choose which plan. If you are in MD, the prepaid plan can be used for the equivalent value at any school. The independent plan is somewhat restrictive. [/quote]
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