Reply to Do most parents have a 529 plan?

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Reply to "Do most parents have a 529 plan?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I think it's fairly common for UMC families to have a 529 plan--they are the ones who benefit most from the state tax advantage and have surplus money to invest and who will likely not qualify for much financial aid.  Some frugal and foresighted MC families have one also.[/quote]

This is right and PP who said *most* families have no savings is also right.[/quote]

+1000

Also, if you are already saving with the intention of using those funds for college [b](and you don't need them as some kind of emergency funds)[/b] by not using a 529 you could be missing out on state tax deduction as well as tax-free growth of the investment.[/quote]

This. Yes, we have savings and investments (including a couple of investment properties) we can cash out for DC’s college but you also don’t know what curveball life is going to throw at you.

When I suggested to DH that we set up a 529 plan when first DC was born he said we don’t need to. I guess there was some verbal commitment from DH’s parents that they would be paying for all of the grandchildren’s college education. Yes, he comes from a wealthy family and they have the funds but I feel like it’s risky to rely on that. I didn’t grow up in a financially secure family so it makes me very nervous. [/quote]

Plus in a wealthy family, it makes sense to establish the 529 and have the grandparents "gift" each grandkid the $17K/person each year.  It does not go against their lifetime gift exemption, so another way for wealthy to tax plan. The grandparents can still have control over it[/quote]

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