Should you save for college in a brokerage account?

Saving for college in a brokerage account could mean getting more flexibility with your money. Making this move could also mean losing out on certain tax breaks. You could split your college savings between a 529 savings plan and a regular brokerage account to get the best of both worlds. It's important to keep your college fund in the right place.

What are college savings options?

Two popular college savings options are 529 plans and brokerage accounts. A brokerage account is an investment account offered by a financial institution. It allows you to buy, sell, and hold various investment assets, such as stocks, bonds, mutual funds, and other securities.

Should I invest in a 529 plan or a brokerage account?

When saving for college, 529 plans and individual brokerage accounts are two popular options. A 529 plan is a tax-advantaged investment account designed specifically for education expenses. By contrast, a brokerage account is a general-purpose investment account with no specific tax benefits for education savings.