What should we do with funds that were previously allocated funds for a 529 plan?

We live in New Jersey where there is no tax benefit for using a 529 plan. Is it worth investing the money we would have put towards a 529 plan in other areas, for example mutual funds or ETFs? Should we choose a different state's 529 plan?

Investing, ETFs, Mutual Funds
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December 2017

529 plans offer generous income tax breaks. Although your contributions are not deductible all growth and earnings in the account grow tax-free and will not be taxed when the money is taken out to pay for college.

If you are you fairly certain your child/ren will be attending college, then I would wholeheartedly recommend choosing a different state’s plan and investing the funds in it.

Now, let’s talk about moving out of New Jersey….

 

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