re: Savings Plan for Children - 529 vs. Other Options

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I personally just like the 529 because it's easy for the grandparents. They can throw money in when they want. Plus they like knowing it's going towards education.

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THIS

I would also add that if you started a custodial account, when they turn 18 they can cash out and spend it on hookers and blow. The 529 does not allow that.

Another thing of note....you are adamant about education and want to give your child the opportunity to go to college. You put it in a separate savings account under your name. Then you die unexpectedly and your wife is so sad being alone and vulnerable, that she chooses average Joe to re-marry. Joe loves fishing. He finds out that there is a huge chunk of change in said account. He cashes is out and buys a fishing camp and a boat.

With the 529, that cannot happen.

Same thing with a divorce. The money you intended it for is used for something else.

It gives you peace of mind for your kids education.