529 Plan vs Regular Brokerage for College

Saving $300 a month for 15 years at a 7% assumption grows to about $96,000 in a 529, tax-free when used for education. The same money in a taxable brokerage account, assuming a 15% tax drag on gains, ends around $90,000, so the 529 saves roughly $6,000. The advantage grows with the tax rate and time horizon. If you later withdraw for non-education use, the 529 earnings face a 10% penalty plus income tax on that portion. Choose a 529 when college is the clear goal; a brokerage wins on flexibility if plans may change.