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