Before You Open a 529…

Many of my friends are having kids these days, which means I’m being asked about 529s more than anything else. Below are just a few of the common questions:

  • “Should I open a 529?”
  • “Which company should I use?”
  • “How much should I contribute?”

Ready for the answers? My answer is:

  • Are you properly insured?
  • Is your estate plan in order?

If not, my advice is generally “Go get properly insured and engage an estate planning attorney. Before investing money for an uncertain future, invest to protect your family should anything unexpected happen.” The baby books don’t cover this, but this is Parenting 101.