Roth IRA vs. 529

4kidsdad
Sun, 30 Sep 2012 12:33:16 +0000

keep your money in your matress!

What happen to your money if your house is burn down?

Better choice would be savings account or CD that’s insured by the FDIC

See [Many 529 plans include savings accounts, CDs with tax benefits - USATODAY.com](Many 529 plans include savings accounts, CDs with tax benefits - USATODAY.com)

Many parents were similarly traumatized after last year’s bear market demolished their college savings plans. Unlike workers who are saving for retirement, parents who are saving for a child’s college education don’t have a lot of time to recover their losses.
One option for parents who can’t bear to take any additional risk is a savings account or certificate of deposit that’s insured by the Federal Deposit Insurance Corp. Several states now offer bank savings accounts and CDs within their 529 plans, providing the tax benefits of a 529 plan with the sleep-at-night security of an account that’s federally insured for up to $250,000.