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Author: foo1bar Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 8174  
Subject: Re: Newbie Date: 5/31/2014 6:38 PM
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I have always thought that 529 plans were the worst. You do not have any control of thea money. Whoever runs the plan has control over what they invest in

I disagree.
You have as much control over the money as any mutual fund investment. You can start with your money in a Fidelity S&P500 index. If you don't like that, you can move it to a different fund - maybe TIAA-CREFF's small cap blend index, or maybe Voya's GNMA income fund (bond fund).

Sure, the fund owner and the 529 entity could theoretically invest in something other than what they are supposed to - BUT - they have no reason to, and they would almost certainly get sued if they did. (same as when you invest via a brokerage or mutual fund.)

If the money is not used for school you pay penalties.
And if it *is* used for school, you don't pay taxes. My thought is to put at least enough to pay for the last year of college. (~$33K now, probably $60K in 10 years.)
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