Reply to 529 plan for only child - what if they don't go to a traditional college?

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[quote=Anonymous]I have a 5 year old who is an only child and am trying to decide if I should set up a 529 plan for her. I generally get why they are so popular but am wondering what parents of only children do. I've been reading up on this and wanted to check if I am understanding correctly how this would work.

If she goes to a traditional college or an accredited specialized program such as culinary school, the 529 funds can be used.

If she doesn't do any post secondary education, my options would be

1. Withdraw funds for my own use, paying taxes on investment gain and 10% penalty, or
2. Change beneficiary to a family member with no tax consequences (however, her cousins are older so this may not help us)

Background: I am a single parent and I have my own retirement and emergency savings in good shape. After all that there is not a ton of money left over each month but there is some and I could probably find ways to cut expenses and make more available. My job is secure and I'm in my 40s.

Does this sound right? Is there anything I'm missing? What would you do in my situation?[/quote]

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