ASK KIM
529s can be Used for Future Kids
by Kimberly Lankford

I am 24 years old and single, but I hope to have a family someday. Can I open a 529 college-savings account, even though I don't have children? I am always thinking ahead and would love to get started.

Congratulations on your foresight and, yes, you can take advantage of a tax-sheltered 529 plan now. Just name yourself the beneficiary -- you can change the designation to a child later on. You'll generally be able to take a state income-tax deduction if it's available in your state, even though you're currently making contributions for yourself, says Joseph Hurley, a 529 expert and founder of Savingforcollege.com.

If you never have kids, or they choose not to attend college, you can use it for your own education or switch the beneficiary to another family member -- your wife, perhaps, or even a cousin.

For more information about 529 accounts, including a list of our favorites, see our state college savings plan map.

Before you invest the money in a 529, though, first make sure you've covered all of your other bases, such as paying off high-interest credit-card debt, keeping three to six months of living expenses in an emergency fund, and maxing out your Roth IRA and 401(k) -- especially if your employer matches your contributions.