Most Important Parenting Strategy by Curtis Ray

The 529 Child education plan is a tax-advantaged savings vehicle that can be used for qualified education expenses!Show more

The 529 plan receives the award for the worst financial concept ever promoted to the public. At the moment this plan will begin to produce accelerated compounding results, it is advised by the financial advising world to kill it! You spent nearly 2 decades building a compounding account, finally ready to reap the reward, to throw it all away for what? The "feel good" of no student debt.

But was this "feel good" worth it? Let's examine the math on what happens post college?

1st scenario is to save $250/mo for 18 years in the 529, have around $137,000 in this account and exhaust it for college. Debt-free and no money compounding is the result.

2nd scenario is to save $250/mo for 18 years in a Children's MPI(tm) plan, which to show apples to apples, assume $137,000 also (would most likely be more). But rather than kill the compound account, take student debt, let your money continue to compound, and from the compound account, pay the student loan minimums for 30 years until it is paid off.

What's the difference! $3,300,000!

Not a penny out of the child's pocket and one scenario enhanced compounding and the other killed it!

The more you know!

Compound Interest is the 8th Wonder of the World! He who Understands it, Earns it!

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