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GolfFather:
a 529 is the safest place to save.</p>
<p>Oh gosh, no. Boy, is that wrong.</p>
<p>529s are investment instruments just like any other bond or stock portfolio and there is risk.</p>
<p>One can lose money (as we did) very, very easily.</p>
<p>The safest places to save are actually FDIC insured accounts or CDs, not 529s.</p>
<p>529s have other possible advantages. But “safety” is not one of them.</p>
<p>This is a huge pet peeve with me. I’ve attended several 529 “seminars.” Investment “experts” (salesmen) sing the praises left and right about them. In their presentations, not one has ever mentioned the risk aspect … until I ask about it … and then they say “Uh, yeah, true, yes, you’re right, there is risk.”
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<p>You are sadly misinformed. There are 529’s that allow money market and bank CD funds, so that allows both kinds of safety - my original intent, safety from financial aid reduction, and your concern, safety from market forces.</p>