Couldn't agree more about saving for a 529 plan. Start early, and even if you haven't started, start now. Compounding is an extremely powerful thing. The amount of money that I have invested has earned 150% since I started investing, thus my college bill will be less than half of today's $$$. Not trying to brag, this is an anonymous board, just know that you can save so much money in paying for college by using a 529 account. Your kid will be college for 4 years. Even if you just start now, your investment will have 3 1/2 years to compound when they start college, and then another 3+ years (beginning of Senior year) to compound when the enter their last year. If you have any left over, you can withdraw it and be taxed with a 10% penalty, or leave it in there to compound for another 20 to 25+ years for your grandkids - this is free money for your kids to pay for their kids college education - just think how much college will cost when their kids attend college. Plus you get to deduce your contributions from your state taxes, as mentioned above $700 max on $10,000 - that's a 7% immediate return!!!!!
You forgot to mention the risk of implosion when the Democrats take over government.
