Very few strategies in college planning are universally correct for everyone.
I don’t think it’s a good idea to write a college essay about how traumatizing it was when your pet cat, Fluffy, passed away when you were seven. But are there some students who, whether by circumstance or sheer writing chops, could pull it off? Sure. They’re the exception (trust me), but I’m sure it’s happened.
In yesterday’s post, I said that one piece of advice I shared recently with my friends that I would say to any parent is to save as much as you can in a 529 plan. Words are important, especially when I’m lucky enough to have as many readers here as I do. So I’d like to amend that advice:
“Consider saving as much as you can in a 529 plan.”
Experts like Mark Kantrowitz and Kal Chany agree that 529 plans offer a lot of benefits for parents seeking to save shrewdly for college. But those plans are not the only college savings option. And while it’s smart to seek advice from reputable sources, it’s also important to be fully informed when you make financial decisions of any kind.
I’m sticking by the advice I gave to my friends. From everything I’ve read and researched, 529s offer some compelling college savings benefits, and many experts agree. But I know my college friends a lot better than I know my blog readers. And there’s no such thing as a one-size-fits-all financial strategy any more than one essay topic could be universally good or bad in every circumstance.
When saving for college, strongly consider the 529 plans. But like choosing a college, it’s important to choose the right savings plan for you. If you’d like more information, here are two great resources:
The college savings section of Kantrowitz’s company, Edvisors, is here.
And Chany’s Paying for College without Going Broke (the updated version will be available October 28) is here.