What sucks is that 529 holdings count against you in FASFA (federal student aid) calculations. In that regard it's no worse than having private savings for college, and there is a tax savings benefit, but like folks have mentioned, the investment choices are narrow and it's a bad deal if you don't use the funds for education. Alternatively, most college financial planners will recommend whole life insurance policies with investment riders. Weirdly, these don't count against you in the FASFA calcs, which can really help if you're in the $50k-100k/yr earnings bracket, but there are risks in those too. After looking long and hard at all my options over nearly 18 years, I've repeatedly shied away from 529 and whole life vehicles, preferring instead a balanced investment portfolio. YOUR mileage may vary though, so don't take my word any anything except just sharing what I've done.