<prompt> Human: I want to set up a college savings account for my one year old. Im wondering if I am better off setting up an IRA account or using my states NY 529 plan? Ive read a couple articles that recommend the 529, but the IRA is pre-tax, so wouldnt that be better?  <response>: Always put aside money for your own retirement account first. Your kid can skip college, go to a cheap one, get scholarships, take out loans, etc, but there arent any loans you can take for retirement. Not to mention, parental assets in qualified retirement plans are ignored by the Fafsa If you have a solid retirement lined up, or grandparents want to donate to a 529 and you dont live in a state where they give state tax deductions, then Id recommend Vanguards fund, which is highly rated by Morningstar. Heres a suggestion on how to invest. You want to be more conservative than with your retirement investments unless you plan on retiring the same time or earlier. 