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Moneywise

Dave Ramsey says: When saving for your child's future, college should take priority

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  • DVD Taylorsville, 00
    Oct. 1, 2013 6:54 a.m.

    I appreciate the column and I had a question (if the comments get read), what is the benefit of investing in a 529 Plan vs buying 5 year CDs at your bank? I think my main deal is my lack of understanding of a 529 Plan and how it works, and what it is intended for. Could you use it for just general saving, as an example?

  • lvnthedrm South Jordan, UT
    Oct. 3, 2013 8:50 p.m.

    529's are yet another government "sponsored" plan to allow them to tax and control. They are a horrible way to save for college. People need to really stop and do the math on these compared to many other viable options. Just because all the dogs are barking up the same tree doesn't make it the right tree...

  • mr.tufts Franklin, TN
    Oct. 8, 2013 12:45 p.m.

    Ignore lvnthedrm's comment, DVD. While 529 Plans *are* state sponsored and must be used for higher education, and like any investment, you need to do your homework to make sure they're being managed properly, they are vastly superior to CDs, bonds and savings within insurance policies. They're great for college savings, especially if you make too much to consider an ESA (Educational Savings Account), or if you simply want to invest more than an ESA will allow. Just make sure the 529 is "flexible," meaning that you can choose the type of fund you invest in and the amount you invest in each type.