In 1990, we bought Florida's 529 Prepaid program for our daughter. Four years of university tuition, one year of dorm, four years of fees. Total monthly cost was less than $100. She graduated HS in 2009 and did not go to college. We waited a year to see if she'd change her mind. Nope.
In 2010, we cashed out the Fl. 529 account and got a grand total of $14,800.00 Ain't that a kick in the pants? If your kid doesn't use the 529, then all you get back is the cash you put in with no return whatsoever. It burned for two reasons..... Four years of university for $14,800?! Wow, what a value. And also, we would have had far more money had we invested it in the stock market instead of the 529.
Fast forward . . . my son is a junior in HS and has Va's Prepaid 529 plan covering two years of university tuition. I also hold an education IRA/ 529 for which he's the beneficiary. It has about $8k in it (about $1,500 of which is gain).
He's not going to college either. I may let his Prepaid plan ride for a while. His four year hitch as a Navy enlisted man may change his mind about the value of college. But the longer I sit on the Education IRA, the more it will cost me. I'll have to pay capital gains on the gain and also a hefty penalty for withdrawing it. It cannot be rolled over into any retirement account.
I have deep regrets about choosing 529 plans. Kids simply are too unpredictable.