PODCAST EPISODE 346 – The Truth About 529 Plans | Smarter Ways to Fund College and Your Child’s Future

ByCory Shepherd

In this episode, Cory unpacks the truth behind 529 college savings plans, their benefits, drawbacks, and what families should consider before committing their money. While 529s promise tax-free growth for education, Cory explains how they can also limit flexibility, impact financial aid, and tie up funds that could serve broader family goals.

Using real-world comparisons, he explores alternative strategies, from taxable brokerage accounts and student loans to securities-backed lines of credit, and how each affects long-term financial outcomes.

Full spreadsheet demo: https://youtu.be/wCXOaJx0lD0

The episode also highlights a creative use of the new 529-to-Roth IRA conversion rule, turning leftover education savings into a lasting wealth-building tool. Cory’s takeaway: 529s aren’t good or bad, just situational. The real aim isn’t to buy college, but to buy choice and opportunity for your child’s future.

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Timestamps:
00:00 – Introduction: The 529 plan debate
01:05 – How 529s work and their tax appeal
02:40 – Real-life model: comparing college funding paths
04:30 – Student loans vs 529 performance
06:00 – The value of flexibility and liquidity
08:05 – New 529-to-Roth conversion strategy
10:30 – Opportunity funds and financial independence
12:50 – When 529s make sense (and when they don’t)
14:30 – Closing thoughts: funding choice, not just college

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This Material is Intended for General Public Use. By providing this material, we are not undertaking to provide investment advice for any specific individual or situation or to otherwise act in a fiduciary capacity. Please contact one of our financial professionals for guidance and information specific to your individual situation. Sound Financial LLC dba Sound Financial Group is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance. Insurance products and services are offered and sold through Sound Financial LLC dba Sound Financial Group and individually licensed and appointed agents in all appropriate jurisdictions. This podcast is meant for general informational purposes and is not to be construed as tax, legal, or investment advice. You should consult a financial professional regarding your individual situation. Guest speakers are not affiliated with Sound Financial LLC dba Sound Financial Group unless otherwise stated, and their opinions are their own. Opinions, estimates, forecasts, and statements of financial market trends are based on current market conditions and are subject to change without notice. Past performance is not a guarantee of future results.

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Cory Shepherd

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Cory Shepherd

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Cory is the author of the books Cape Not Required and Your Business Your Wealth (with Paul Adams) as well as the cohost of More Than Commas, a 300+ episode financial podcast.  He has also written for Authority Magazine and spoken at multiple events and conferences across various industries.  Ever in pursuit of personal growth, Cory has attained the Chartered Financial Consultant® & Certified Financial Planner® designations, requiring thousands of hours of experience and rigorous training.  He believes strongly in education as a core component of his work with clients, and he loves the opportunity to build a new spreadsheet.

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