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Ask Dave

Which Plan Should I Choose?

Kelly has a 529 savings plan and asks Dave if it's beneficial to switch to an ESA (educational savings account).

QUESTION: Kelly asks if she should convert her 529 savings plan to an educational savings account. Dave says it depends.

ANSWER: If you have a flexible 529 plan, I’m not against that type. I don’t recommend prepaid tuition, the structured investment plan where you are not in control of it, or something like that. If it’s flexible and you control the investments throughout the child’s growing, that’s great. The great thing about the educational savings account is that it’s always like that.