Chapter 14 Summary:
Both savings in the child’s name and in 529 plans can make college more expensive. It should not be surprising that government plans have such negative unintentional consequences. Nothing should be scarier than the phrase, “I am from the government, and I’m here to help you.” You owe it to your child or grandchild to examine other methods of preparing for college expenses that may have better outcomes.
If a 529 plan can have such negative consequences, why are big financial firms frequently recommending them? Could it be the large investment management fees they get from managing these plans?