529 vs. brokerage for your kid: what the math actually shows
As seen on the 24/7 Wall St. homepage on October 10, 2026.
If your kid is going to college, keep pumping the 529. You probably need around $150k in today’s dollars to fully fund college 13 years from now.
The top reply pegs full college funding at roughly $150k in today's dollars, well beyond the balance saved so far at age 5. The flexibility argument for a brokerage account runs into a second trap: assets in a child's name hit financial aid harder than a parent-owned 529.
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A parent on r/personalfinance is weighing whether to redirect most of their annual 529 contributions into a taxable brokerage account for flexibility toward a house down payment or starting a business, with a son nearly 5 and $36k already in the 529.
The top comment lays out the gap: fully funding college 13 years from now takes around $150k in today's dollars, and the account is projected to reach only about $87k by age 18 without new contributions.
A second highly voted reply adds a financial aid wrinkle that shifts the math further toward the 529. Assets held in a child's name are assessed more heavily under FAFSA than a parent-owned 529, so a brokerage account in the child's name reduces aid eligibility more than the flexibility gain is worth.
The thread surfaces a genuine counterpoint: some commenters are less certain college is the default path in an era of rising tuition and shifting labor markets, and at least one parent stopped contributing to their child's 529 after an early lump sum. With 161 comments, the conventional wisdom around college savings looks unsettled.