David Blanchett, a seasoned financial planner, opts out of 529 college savings accounts for his children, citing a preference for taxable investment accounts despite their tax implications. The 529 plans, which offer tax-free withdrawals for education expenses, are increasingly scrutinized by families wary of locking funds into volatile markets. Blanchett, 44, argues that capital-gains taxes on diversified portfolios provide greater flexibility in an unpredictable economic climate.

His approach reflects a broader trend among high-net-worth families prioritizing liquidity over tax advantages, though critics note the potential long-term costs of forgoing education-specific tax benefits.