Amy Irvine knows a thing or two about saving for college. As a Certified Financial Planner with over 20 years of experience — most recently at her own firm, Rooted Planning Group — she’s been helping families plan smarter. When parents come to her for college savings advice, a 529 plan is usually part of the conversation. But many have misconceptions about how these plans actually work.
In a series of three brief conversations, Amy debunks common myths about 529 plans, helping families make informed financial decisions based on facts — not assumptions.
In this video, she starts with the basics.
Myth: There is only one type of 529 plan.
“Many of my clients have this misconception,” reveals Amy. “In reality, there are many [plans], and it really depends on your individual situation which plan or combination of plans works best for you.”
What are the various types of 529 college savings plans?
“The good news is there is definitely more than one type of 529 college plan,” says Amy. “There’s the state college savings plan. There’s also a state prepaid tuition plan and then finally a private prepaid tuition plan.”
Take a crash course on 529 plans >>
How can I get started?
“Planning for one of the largest investments you’ll ever make in your child should start early,” recommends Amy. “I know it’s difficult to know where a newborn might go off to college, but knowing the projected costs for a couple of different college types is truly helpful in automating savings.”
Amy suggests two action steps to move forward:
Goal Setting
“Determine the amount you would like to cover of your student’s education.”
Education
“Sit down and educate yourself about the 529 plans that exist,” says Amy. “Don’t let analysis paralysis get in your way. If this stuff is confusing to you, reach out to somebody who specializes in college savings. They’ll be there to guide you.”
See another of Amy’s 529-myth-busting videos >>
