Keeping You In Control
Greg wants to know why Dave recommends a college savings plan, such as the 529, that keeps you in control of where the money goes.
QUESTION: Greg asks what Dave means when he says get the college savings plans that give you control.
ANSWER: There are lots of plans such as the 529 plan where you put the money in and the plan administrator decides where your money goes, whether it’s into bonds or money markets or growth and income funds or balance funds or aggressive funds. They decide where the money goes based on the age of the kid or the whim of the administrator and what their policy or strategy is. I would propose that you don’t do any of that.
You need to pick a 529 college savings plan where select the mutual fund and continually select the mutual fund, and can change them inside the 529 when you want. That way, you control what’s happening with the college savings. Not the age of your kid or the plan administrator.