529 plans: college savings tool

What happened: President Trump's "One Big Beautiful Bill" Act, signed in July 2025, expanded the use of 529 education savings plans. Now, these tax-advantaged accounts can fund expenses beyond college, including K-12 tuition and student loan repayment. Meanwhile, financial advisor Dave Ramsey advised a military mom to 'underfund' her kids' 529s, suggesting she redirect excess funds to more flexible accounts like Roth IRAs or taxable brokerages.

Market impact: The expansion of 529 plans could boost demand for these investment vehicles, benefiting financial institutions offering these plans. However, Ramsey's advice may temper growth in 529 contributions, as some investors might opt for more flexible savings and investment options.

What to watch next: In Q4 2025, monitor 529 plan providers' earnings calls for insights into how the law's expansion impacts their business. Additionally, track the U.S. Department of Education's guidance on implementing the new 529 rules, which could clarify the scope of eligible expenses and influence investor behavior.