WA has a 529 plan that offers guaranteed tuition, here's how it works: $117 plus 7.5% finance charge gets you what is today $86 worth of tuition. We have a 4th grader and a kindergartener.
My wife thinks we're in a college tuition bubble, like real estate or dotcoms had or gold is having. I also have a hard time wrapping my brain around front-loading the payment that much. But tuition has never gone down and it was level for a while so may have some run in it yet.
What do you all think, is it a good deal? (all my other concerns are addressed, it's fully transferrable if the kid(s) don't go to the schools the tuition is pegged to, it can be swapped between kids, other stuff like that...)
(actually I have another issue, there is a caveat that if I withdraw it there is a 10% IRS penalty on the total and I don't understand that because the only deferred taxable activity is reinvesting of dividends in the underlying wherever they park the contributions until you spend them) (there is no state tax benefit to this program at all)