Which 529 Plan should I choose?

If you have the basics down AND you filled all the prerequisite accounts already then you are ready to proceed.

Here are the top three 529 plans in MY opinion (highly-rated, low-cost and offer a good mix of age-based investment options as well as individual portfolios) when state income tax breaks are NOT taken into consideration:
1. New York's 529 College Saving Plan
2. Nevada (Vanguard) State Plan
3. Utah Educational Savings Plan

If your home state's plan does NOT offer state income tax benefits then the above 3 are probably sufficient for you to contrast and compare and find a PERFECT choice for YOU.

If however, your home state's plan DOES offer state income tax benefits then you should add it to the list of the above 3 and contrast and compare to find the PERFECT choice for YOU taking into account that there are state tax benefits to be had each year you make contributions to your state's plan.

Is a 529 Plan right for me?

Now that we have covered what a 529 Plan is let's address the natural concerns with a 529 looking out ~17 years from today:
1. Undergraduate college is free, my child got a full scholarship or my child has ZERO interest in going to college:

• I can use the money for myself, my spouse, move it to another child, move it to a family member (very loose rules here...basically I can move it from my child to HIS/HER: sibling, mother, father, aunt, uncle, child or first cousin). I can even do one of those semester-at-sea deals or study-abroad deals for myself and spouse.
• In the extreme worst case I pay the 10% penalty and pay federal/state taxes on the EARNINGS. And if you did your state's 529 plan and got the state income tax deduction on your contributions going in they may want that deduction back.

2. Now, is a 529 the right choice for ME? In other words, is this the best place to put my money?

• You know what they say on airlines right? Put the mask over your face before putting it over your child's face.
• Student loans are CHEAP. Personal loans are expensive. Better your child take out student loans than you eating welfare turkey out the can ~17 years from now.
• If you are like most folks today who waited to have children then the age 59.5 is much closer than you would want it to be. At that age, access to your 401K, IRA, and Roth IRA comes into play. Sooo, with that said...

3. Accounts to fill BEFORE you do a 529, IN descending ORDER:

• 401K up to employer match - FREE EFFING MONEY! Always take this first. If your employer matches your contributions up to X always contribute up to X. DUH!!!!! Pre-tax going in, tax-free growth, taxed (without penalty) coming out after you are 59.5 years old.
• HSA - I personally think this is the best account ever made. Pre-tax (even pre-payroll taxes) going in, tax-free growth while in, tax-free coming out for medical expenses. If you have a child then medical expenses come with the territory.
• Roth IRA - After-tax money going in, tax-free growth, and tax-free coming out after age 59.5.

What is a 529 Plan?

What is a 529 Plan?

• A tax-advantaged account where you can put after-tax money into and it grows tax-free. The money can then be withdrawn tax-free for higher education qualified expenses.
• Higher education is undergrad college and graduate school. It is NOT high school.
• Examples of higher education qualified expenses are tuition, room and board ON campus, COMPARABLE off-campus housing, REQUIRED books and supplies, computer, and internet access.
• Examples of *NON* higher education qualified expenses are clubs fees/dues, fraternity/sorority fees/dues, etc.
• Since the money you put in (your contributions) is AFTER-TAX you can withdraw your contributions (principal) at any time without PENALTY. You will owe taxes on a pro-rata basis however. Additionally, if you took a state tax deduction on your contributions going in then naturally that state may want that deduction back.
• If you withdraw the money for a NON higher education qualified expense you will pay a 10% penalty PLUS federal/state taxes on EARNINGS (the growth on your contributions).

My most prized assets

It's about time I divulge something personal. Been on this blog for almost a month now and you have no idea of what matters most to me. How could you even claim to know me or begin to make my blog a daily part of your life if I am keeping you ignorant of my most prized assets? Drum roll please:
1. My health
2. My Friends & Family
3. My education

That list, my friend, took years of introspection, countless what-if scenario walkthroughs and last but not least exhaustive end game exercises.

1. My health
Quite frankly, it is the be all and end all. Without my health I have nothing. By no means am I claiming to be in perfect health. You and I both know I could stand to lose 15lbs. But I am not referring to health in the terms of being in PERFECT health. I am referring to being in functional health, you know, free of pain, injuries, illness or disease. This is the minimum level of health that allows me to get up every day and be the best person I can be even when it doesn't necessarily translate into me being my best. Wow, putting that into words fills me with regret just thinking of all the good health days in which I wasn't even TRYING to be my best. But in any case, good health is the necessary foundation for MY greatness to truly shine. Don't get me wrong, I may flash some brilliance when I am under the weather but don't expect any greatness from me on a consistent level if I am not in good health.

2. My Friends & Family
Oh where, oh where would I be if it weren't for my Friends & Family? That list of places is comprised solely with all the desolate, destitute and desperate places you can think of in this world and the next. I am eternally grateful for the simply amazing network of Friends & Family that I possess. Outside of my health, these people are everything to me. Let me put it this way, you can place me in some dire circumstances and I am confident that if given a working phone with my address book I have a great chance of getting out. These people are that freaking AWESOME. Hell, I will even let you in on a secret. All those times you gave me credit for something clever that you thought I did, said or wrote it was actually THEM. Now, that doesn't mean you don't give me props going forward. :)

3. My education
If you think education is expensive, try ignorance.
- Derek Curtis Bok
I sometimes feel like the kid in the movie The Sixth Sense, "I see ignorant people walking around like regular people. They don't know they're ignorant." And while I do acknowledge that there is some bliss to be found in ignorance there is also an accompanying amount of grief. And don't get all up in arms thinking that I am claiming to be some genius or even a relatively smart guy. What I am claiming, loud and proud, is the ability to learn. Remember, this is the information age where new technology becomes ancient technology in the blink of an eye. What that means to me is that ignorance in this age is the inability to learn. The folks who tell you they are either too busy or too old to learn will always be and always were. I SAID IT!

My most prized assets are the top three things that I need to fight harder to strengthen and protect. It should also be noted that it is within MY power to do so.

What are your three? Are you working to strengthen and protect them? Is it within your power to do so?