No, it is not. 529s are college savings plans that often include tax benefits. 529 Plans vary greatly by location. Most are tied to specific states and schools. Unlike other types of savings plans, funds from 529s can only be used for school expenses. If the tax advantages of your chosen 529 Plan are beneficial, it might be worth your investment. However, keep in mind that your 529 balance is not protected. Funds are often invested in bonds and your balance may fluctuate from time to time. If the funds are not used, they can be transferred to another beneficiary, used for private elementary or high school, or cashed out with a 10 percent tax penalty.