Benjamin Beck left a few important details out of his June 1 Maine Voices column (“Roth: A better college-savings plan?”).

• It is irresponsible to assert that a Roth will grow faster than a 529 plan.

It’s impossible to predict yields over long-term investments. If we advisers could actually do that, most of us would be too rich to bother being other people’s advisers anymore.

• Some Roths can be as limited for investment choices as 529 plans can be.

A Roth is for retirement; the same money, therefore, can’t also be an education fund.

Mr. Beck says that funding a retirement should come first, and he’s right. But he’s also implying that if someone needs to “borrow” from their retirement to pay for college, that’s OK. That’s not OK.

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One of the biggest problems people face now is that they borrowed from their retirement plans and now feel they will never be able to retire.

He talks about the $5,500 or $6,500 you can contribute to a Roth that will grow tax-free and that, under some circumstances, you can withdraw from without penalty.

Again, if you do this, you are only taking money from yourself.

You can, however, contribute up to $14,000 per person to a beneficiary’s 529 plan and fund it up to a maximum of $350,000.

Anyone who wants to can contribute to anyone else’s 529 plan, and if one child doesn’t use it all, it can be transferred to a sibling. 529s can also now be used for technology costs at school.

A 529 may not be appropriate for your family, but a Roth is not a magic pill, either.

529s are for education; Roths are for retirement. Making informed decisions about using both, together, is a better bet.

Liz Winfeld, FA, AAMS

Cape Elizabeth


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