Hello! I'm trying to save for college education for my 2 y/o son. With high inflation we're currently experiencing, I-Bonds that are paying over 9% seem like a good option to invest in long term.
Vanguard's 529b plan is a conventional long-term college savings plan and I'm wondering which option is better at to put say $10k into with an intent of not touching it for many years.
I want to of course retain as much earned interest as possible and reduce tax burden at the time of withdrawal. Does anyone have experience with that? I'd appreciate a constructive advice. Thank you.
The only issue I see is that if you have a 16 year time horizon, you might not be holding the i-bonds for that period of time. The 9% is likely only a temporary phenomenon based on current inflation that should subside at some point in the next few years, at which point the yield will subside as well. That said if you only have 10k to invest that's probably your best option for the next year, then afterwards use the proceeds for the 529