USAA 529 College Plans

[usafimj]

Any of you guys do USAA 529's college plans? Right now I'm putting $100/month into a savings acct for each of my two kids. Low interest rate and its safe. Seems with a 529 plan you can make more money but also lose money. It can only be used for college expenses which is fine with me. Can't use it for a car which is crappy. If you take money out for non-college expenses then you get taxed 10%. I'm not sure if I should stick with the savings acct's or go to a 529 plan. What do you guys think?

 

[OU812]

I was actually just looking at this for my daughter, right now I have the post 911 GI bill I plan on signing over to her since I won't need it but I'm worried that it will lose funding or something by then. I'm in the same boat though, I don't want to put this money away for her school then not need it but get taxed out the butt if I pull it out for something else.

 

[usafimj]

Since I'm an E-5 my wife qualifies for certain school programs. Once I make E-6 she won't qualify so I'll swap over to the post-9/11 and give her half. A family with two degrees/jobs (hopefully) sounds better than two kids with post-9/11 money they can't use for another 15yrs.

 

[Fuerza]

I think you should stick to a regular Roth IRA for reasons already mentioned. What happens if little Jonny wants to be like dad and just enlist in the Army. You'll get hit with that tax penalty if he doesn't use it for education. If you put the Roth IRA in your name you can still withdraw from it for a kids education without penalty and if he doesn't use it you have it already saved for your own retirement.

 

[BRNG ITT]

USAA provides a relatively un-biased point of view on the pros and cons. It sounds like you are fairly confident that it will be used for educational expenses, but many things can change in the mean time. I suggest taking the chance on the USAA 529, but I must say that my opinion is highly biased in favor of the company for personal reasons.

https://www.usaa.com/inet/ent_blogs...adviceblog&postkey=are_529s_the_best_approach

 

[usafimj]

I'm use USAA for everything and they're great. Thanks for the input