Why I Chose a UTMA with a High-Dividend ETF Over a 529 College Savings Plan for My Kids’ Future

a boy and girl holding cash

When you become a parent, your definition of “long-term investing” changes overnight.

Suddenly, it is not just about your retirement portfolio, your dream vacation home, or your personal wealth goals

It is about building a future for your kids.

For me, the question started with a simple but important dilemma:

How do I save for my children’s future without locking them into a single path?

I thought the answer would be obvious.

Like most financially savvy parents, I immediately looked into a 529 College Savings Plan.

The tax advantages were attractive, the structure was familiar, and the purpose was clear:

• Save for college.
• Grow your money tax-free and tax-deferred.
• Pay for higher education.

But the deeper I dug, the more my enthusiasm turned into frustration and worry.

Why I Walked Away from the 529 Plan

The main problem with the 529 was its rigid rules.

The tax-free growth is great — but the funds can only be used for college and…