Economic and Political Insights

Economic and Political Insights

Personal Finance & Investing

How Best to Save for College

Short Answer: Combine an initial contribution to the equity fund inside a 529 with other more liquid investments

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David Bernstein
Jun 20, 2025
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How Best to Save for College

Abstract: Many financial advisors favor the use of 529 plans for most or even all savings towards college. The analysis presented here suggests 529 plans should have a more limited role in the process of saving for college. Many 529 plans have high fees and investments through bond funds and lifecycle funds inside a 529 plan …

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