Reply to Roth IRA to pay for kids' college vs. 529

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[quote=Anonymous]Please help us think like rich people.  We will be opening savings accounts for our kids to pay for college but we've heard that the performance of 529s, fees, and other factors basically make them worst than investing in mutual funds for the same purpose.  But, as we understand it, the tax incentive (depending on the state) might make a 529 better.  As we were doing additional research (esp. since we might move from where our 529s are opened in a few years) on the various options, we ran into the Roth IRA recommendation.  Have you done it?  How did you do it?  Can it actually be a better vehicle for saving for college?  And, if the kid decides not to go to college or can't, is there any way that the money can be used for something like a down payment?

In other words, what is the best way to save for our kids' future (beyond fully contributing to our own retirement) that is as tax sheltered as possible and as flexible as possible in the event that college does not work out (it is our default, obviously, but you never know).

Thanks![/quote]

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