Hello. My wife and I just gave birth to our first child nine weeks ago. I would like to start a college fund for her. I was lucky to have the Florida Prepaid College to use when I went to school and wanted to do the same for my daughter; however, I recently heard about 529 plans. I have been researching them and now have the question of which is better? Tuition is paid for via Florida Prepaid and if it is not used (out of state college, scholarship, doesn't want to go to college, etc.), then the money would be refunded back to me. The downside to this is I would only receive the money back I put in and not any interest over the 18 year period. I feel that with the 529 plan I would gain interest and it might be a better deal. Would the interest earned through the 529 be a greater benefit then a fully paid college tuition (received at future rates but paid through todays rates) if the amount contributed was equal?
