Get Rid of Your 529 Plan, Open a CoverdellJune 23, 2020
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12 min read
Original research piece by Lightning Capital’s Charles Hwang. As university costs increase at an average inflation rate of 8% a year, how does someone try to save for a college degree? Many financial advisors and journalists preach the importance of opening a state 529 plan. However, how many parents are actually fully funding these plans to pay for all four years? I’ll explain the drawbacks of the 529 plan further and why I started the Coverdell Education Savings Account when my kids were born. I consider it superior to the 529 plan in several ways, IF it is done right.