Beyond the 529: Navigating College Savings Alternatives

Trevor Lawson explores flexible alternatives to the traditional 529 plan for families wary of tying up funds exclusively for higher education. While acknowledging the 529's tax advantages and new provisions for Roth IRA rollovers, Trevor evaluates the pros and cons of taxable brokerage accounts, Roth IRAs, custodial accounts (UGMA/UTMA), and cash-value life insurance. The discussion emphasizes the importance of balancing education funding with personal retirement security, noting that while students can borrow for college, retirees cannot borrow for their later years. Ultimately, the episode provides a framework for selecting a savings vehicle that aligns with a family's specific needs for financial aid eligibility, tax efficiency, and long-term flexibility.References:Four Alternatives to '529' Plans for CollegeSecurities and investment advisory services offered through Osaic Wealth, Inc. member FINRA/SIPC. Osaic Wealth is separately owned and other entities and/or marketing names, products or services referenced here are independent of Osaic Wealth. Branch phone: 919-546-0400.