True there are different opinions about whether or not 519 plans are better choices for college savings, but a general rule is that no matter which way to go, the asset should be under the parents’ names rather than under the kid’s name. For 529, the biggest concern may be the penalty of using the money elsewhere if the kid decides not to go to college. In addition, there are additional fees for 529 plans and choices are limited. However, if the kid does go to college, 529 plan will be a good vehicle to save for college. The tax bill signed into law in August made tax benefits of 529 plan permanent and that makes it more attractive.

One comment, I have heard from some financial planners on the radio that investing in a College Savings plan for your kids is actually not as good of an idea as some would think.

They recommended that your money is better invested in an IRA, especially if your employer matches your contributions, then when needed, you pay the penalty to pull some of the money out early to pay for your child’s education.