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Ask Sallie: Do I Need a 529 Plan? (Video)

By Sallie Krawcheck

Sallie’s answer:

A question to a question: Do you have a child? Another question, if you answered yes: Do you think that child will go to college? If so, you may want to have a 529 plan.

A 529 plan is a tax-advantaged way of saving for higher education. I had some for my kids. It was really a fantastic thing because I put the money in, it grew over time, and I sort of forgot about it. By the time it was time for the kids to go to school, it had pretty much paid for them.

So, yes, if you have a kid who you think is headed to college, for sure. If you can afford that, do invest in a 529 plan.


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Sallie Krawcheck

Sallie Krawcheck is the Co-Founder & CEO of Ellevest. Her life’s mission is to help women to reach their financial and professional goals.