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

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]This is for people who are educated about 529 accounts and can afford to set aside cash but have weighed the pros and cons, and decided not to set it up. If you are one of those- what were your reasons?

My DH and I have had this conversation so many times and he firmly believes that we can grow our money better elsewhere and not have to deal with the hassle- especially since we may have to move to different states for our job.

Thank you for the insights.[/quote]

I did the opposite after researching it, and I think we made the right decision.  For context, I work professionally in finance, and I was also weighing the pros/cons.  We also have a Goldman Sachs financial advisor, and he recommended the 529 from the jump.  I was the hesitant one.

The biggest pros are:

1. Account earnings grow tax free per federal tax law
2. Earnings are now able to used for non-educational expenses (with some limits)
3. Most good plans offer a variety of investment options that are similar to a 401K
4. You can use them regardless of your home state, though some states also give residents additional state tax benefits

If you all change your mind, look into the Utah 529.  It is one of the most well regarded ones, and you don’t have to live in Utah to participate.[/quote]
Good post. Our 529s for our kids are the NH ones, and my mom opened Utah ones for them. None of us has or will live in those states.  There is zero hassle in opening one and very little hassle involved in withdrawals.  The fact that your DH has brought up the hassle factor and potential state moves for you as obstacles makes me worried he is not financially sophisticated enough to be making these decisions on his own.

I will say that we have been able to invest plenty of funds in our retirement accounts, non-retirement investment accounts, and 529s along the way, so we felt pretty diversified between that and real estate holdings. The 529s have grown very well, and one of our kids has a large athletic scholarship now. It’s great to know that the extra funds will continue to grow tax free and be available for grad school and/or grandkids down the road. [/quote]

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