<p>My D has some extra money to invest this year, and we were talking about something I have not seek kicked around out here. She is 24, out of college and working, and is pretty sure she is going to go to graduate school; she works in an industry where a graduate degree is important for advancement in the long term. It is likely that she will start grad school in 2-3 years, probably a master's program. She is also planning to have children at some point in the future; I think the odds are well over 95% that she will have kids, whether her own or adopted -- she is a super people person and loves kids, also has a long term steady boyfriend that she will likely marry in a couple of years. She already has a Roth IRA she invests in every year, and also puts in enough to get the match on her 401K at work plus invests some additional money in that (not maxing it out, but still putting quite a bit in given her income). She also has a year's worth of expenses in liquid savings. She will inherit a small-ish trust this year. </p>
<p>We were talking about whether she should open a 529 account with herself as the beneficiary. There is a decent plan in the state she lives in, and the investment could grow tax-free for either her own graduate school or she could transfer the beneficiary to her own kids. She wouldn't put all of the trust money in there, but some of it.</p>
<p>Thoughts on this? It seems like a good idea to me... the only thing I can think of that could be an issue is that she might move to another state at some point, and then would lose the state level tax break.</p>