I think that my comment about you being too simply is correct. If you look at the indentation of my first reply to this post, I am agreeing with you that 529 is not a Ponzi scheme and you have a lot of stock index funds, bond funds and age based funds to choose from. If you read my following post which I have a section about investing for college tuitions. My comments about 529 return is not good is based on my experience with Illinois 529 Bright Star program. I am sure that some other states’ 529 might have better returns than Illinois’ one. In addition to 529, I have also use UTMA accounts to manage my tuition investment for my kids. 529 is an investment program, any investments will have return associated. This is an investment 101 course.