What great dialogue. I do hope that some prospective "529ers" are monitoring this and that it is helpful to them. A major issue seems to be what constitutes a satisfactory return and what is a reasonable period of time-frame over which to see reasonable results. I encourage any investor to give that serious thought. Also, if you have an "advisor, demand coverage of the pros and cons, their personal compensation as well as the plan's expense structure. Aside from the lure of something that is "tax free", understand the withdrawal qualifications that must first be met. Understand the limitations placed upon making a change. Just as there are undoubtedly some solid plans, I also suggest that the 529 Plans are a magnificent opportunity for mediocrity and any such plans are, to me, far better protected at present than the trusting investor. With its federal parenting, this reminds me of the "Revised - 2 Part IRS Tax Form: How much did you make last year? Send it to us."