I want to set aside $300k for my two small children - is a 529 the best way to go?

529 plans, designed for education savings, are often overlooked despite their tax advantages. Choosing between passive and managed plans involves understanding costs, potential returns, and advisor incentives.

The Redditor's dilemma about whether to follow advice for a $150,000 investment per child in a managed account raises important concerns about overfunding and the implications of locking up capital.

Passive 529 plans generally incur lower fees because they use index funds, whereas managed accounts may have higher costs due to active management. It's crucial to analyze whether these higher fees translate into better performance.

Investors should carefully consider the risks of overfunding a 529 plan, as it could tie up funds that might be needed for other priorities or financial needs.

Read at 24/7 Wall St.