Is Something Better Than The 525?

With 2 kids in college and $16,000 saved in a 525 college savings plan, Bruce doesn't know if he should keep the money there.

QUESTION: Bruce has a sophomore and freshman in college, and $16,000 in a 525 college savings plan. He also has $300 a month that goes into that and an additional $1,300 with which to cash flow college. Should he take money from the 525 to put into something else for college?

ANSWER: You have to use those for education, so by the end of the junior year I want that emptied. Whatever you have to do to make that work is what you should do. Use some cash now and then empty it out later, because you’ll get caught if you have money in there and there will be taxes. Cash plan in such a way that you get it all out before graduation.