A Simple College Fund That Doesn’t Count Against Financial Aid

Brian Fricke, CFP®Financial Planning

In this edition:

We aren’t fans of 529 College Savings plan. There’s a much simpler and easier way to go about funding college education.

Money in a 529 plan can count up to 5.5% of a child’s college savings in the financial aid worksheets used by most colleges and universities, which directly diminishes the potential for financial aid.

More importantly, 529 plans tend to offer limited investment choices, and the benefits of tax-free compounding aren’t that great based on the average account balance of most 529 accounts.