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I decided against 529 because I believe the educational landscape (college) will be much different compared to my (our?) experience. Therefore, I opened a normal brokerage account for each child at Fidelity Investments.
The account ownership is in MY name (not the child’s) and can use it for anything (not bound to education, etc). I also have control of the timing and access all kinds of investment options.
Some may say the taxes on the investment income is a downside but I have the funds invested in aggressive growth so very little dividends and I tax loss harvest to keep the positions from accumulating embedded gains.
When the time is right I will “gift” the money to my child up to the annual gift limit.
My 2 cents.
I like the idea of being able to use it for anything, not just limited to education.
I started a 529 plan for my daughter with her inheritance. She was just about to turn 2. I don't remember having to account for it on her FAFSA last year. Thankfully, she received grants and waivers, so I only needed to withdraw for the flex dollars for meal plan and her books.
It all depends on where you intend to send you child to. Yes we were advised to open a tax free 529 Plan but a few years later we told that it's better to save than to put money into that plan. Thankfully our kid got a Scholarship that paid for most, if not all of his tuition and that helped a lot.
I did my research on prepaid plans vs 529 plans. I’m going with a 529 plan. I like what Vanguard offers because they have the equivalent to the QQQ etf which I like over the SPY for growth and long term investing. The only drawback is it’s $3,000 minimum deposit which I’m saving towards now.