This white paper is based on research undertaken to determine whether a combination of savings and prepaid 529 products would result in a materially superior risk-adjusted return profile to savings plans alone. The underlying study used over 8,200 data elements including historical returns, inflation data, and financial models.
The original 2018 analysis was conducted by 529 Expert, LLC without third-party funding or outside bias, resulting in the Forbes article, “The Best College Savings Plan You’re Not Using.” Based on that initial study, Private College 529 Plan commissioned this 2019 update for use in educating college savings stakeholders on the benefits of using a prepaid 529 plan alongside a 529 savings plan.
This information does not constitute tax advice and is provided for informational purposes only.
Before investing in any 529 plan, please consider whether the home state of the beneficiary offers any tax benefits that are only available through that state's 529 plan. Please read the respective 529 plan offering document and consider it carefully before investing in a 529 plan. Consult with a tax advisor, financial advisor, local taxing authority, and/or plan provider or sponsor for more information.
Brian M. Boswell, CFP® is a registered representative of and offers securities through MML Investors Services, LLC. Member SIPC. He is licensed to sell insurance in the following jurisdiction(s): MA.
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Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.