College Savings Planner please help me.

[LFS]

Of course the problem with all government programs is you have to trust the government. I highly doubt the rules for my employer provided 401k will be the same when I retire. The same goes for IRAs, 529s or any other program. I simply don't trust the politicians to not change the rules, so I limit my exposure to what I see as the biggest risk/threat...politics.

Just how lumpy is your mattress? And if you are keeping your savings in federal reserve notes, I assume you believe them when they say they are worried about deflation. Because if inflation takes old like a lot of people believe is happening, then it costs you money just to keep your savings in cash.

And seriously, the only difference between your cold-hard cash and financial accounts is that the government has a better idea what's in the accounts... but they can take both from you. And if you get caught walking around with more than $10k in cash, you tend to get in trouble... or at the very least, asked a lot of questions for a very long time.

[Diomed]

And if you get caught walking around with more than $10k in cash, you tend to get in trouble... or at the very least, asked a lot of questions for a very long time.

They'll usually wind up leaving you alone, but in many places they'll take the cash under our forfeiture laws. Something else we can thank our brave drug warriors for.

[gunderwood]

Of course the problem with all government programs is you have to trust the government. I highly doubt the rules for my employer provided 401k will be the same when I retire. The same goes for IRAs, 529s or any other program. I simply don't trust the politicians to not change the rules, so I limit my exposure to what I see as the biggest risk/threat...politics.

Just how lumpy is your mattress? And if you are keeping your savings in federal reserve notes, I assume you believe them when they say they are worried about deflation. Because if inflation takes old like a lot of people believe is happening, then it costs you money just to keep your savings in cash.

And seriously, the only difference between your cold-hard cash and financial accounts is that the government has a better idea what's in the accounts... but they can take both from you. And if you get caught walking around with more than $10k in cash, you tend to get in trouble... or at the very least, asked a lot of questions for a very long time.

I wasn't implying saving reserve notes. Yes, in the extreme they could do that. Less extreme, they can simply change the rules like they do with SS (e.g. raise the retirement age). They could change the penalties, limit your choices of schools, charge you special rates because only rich people have 529s, etc. Any of these special plans can and likely will change over the years. Thus, if two alternatives are modeled and the outcomes are "close enough," I'll choose the least government privileged account because it bares less political risk.

I'm not saying you shouldn't use those vehicles, but rather that you should understand how privileged accounts may be viewed and changed after you money is in there.

[gunderwood]

And if you get caught walking around with more than $10k in cash, you tend to get in trouble... or at the very least, asked a lot of questions for a very long time.

They'll usually wind up leaving you alone, but in many places they'll take the cash under our forfeiture laws. Something else we can thank our brave drug warriors for.

Yes, we can thank them for that. IIRC, the forfeiture laws do not require you be proven guilty of any crime either. Simple possession of that much cash is considered prima facie evidence you're sufficiently guilty to forfeit your reserve notes. Even if you are absolved of all crimes, you may not get your cash back...those things have a nasty habit of disappearing.

[Diomed]

Even if you are absolved of all crimes, you may not get your cash back...those things have a nasty habit of disappearing.

Generally you don't get it back, though the process seems to be more aboveboard than simple theft (if legalized theft can be called aboveboard). What you'll see is a case that is entitled something like "Commonwealth of Virginia vs. Ten thousand dollars", and unless you're willing to pay for a lawyer to argue on behalf of your cash, it's gone. Same with automobiles and other property, though in those cases there's usually some sort of evidence of a crime, beyond mere possession of the item being seized.

Walking around with large amounts of cash is a very risky proposition.