Understanding the Performance of 529 Plans Compared to CDs
Challenges with 529 Plans
Many parents are realizing that 529 plans for their teens are not yielding the expected returns. Reports indicate that accounts have made less than 1% in the past three years, leaving many to reconsider their investment choices.
Considering Alternatives
Given the poor performance, moving funds to CDs (Certificates of Deposit) may be a wise decision for those looking for more reliable growth. CDs typically offer higher interest rates and guaranteed returns.
Conclusion
Parents should carefully evaluate their options and consider switching from underperforming 529 plans to more stable investments like CDs. Making informed decisions now can have lasting benefits for your child’s educational future.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.