At that stage, families can effectively buy a little more time for compounding, and if plans change midstream, other family members, or even a parent, can use the funds.
The plans also give D’Amico a way to offer clients a break. He favors low-cost Ohio plans for state residents, sold directly by the state. He helps clients fill out the forms, but then keeps that money out of the 1 percent to 1.5 percent he charges on assets under management.
Nathan Bachrach, chief executive of Simply Money in Cincinnati, said he also considers 529s "courtesy accounts." Still, he stressed, they should not be automatic for every client. Parents must consider factors such as choosing a public or private school, and how much to contribute to their children's education, if anything.
Moreover, focusing on college but not retirement can leave parents in a predicament, said Beth Walker, a financial planner for Wealth Consulting Group in Las Vegas.
College planning "is not just this easy-button answer," Walker said. "It has to be done in the context of a bigger-picture plan."