<prompt> Human: I live in Michigan and we can do either a traditional 529 and invest in a different funds, or we can prepay college tuition at todays rates. I was looking at doing the prepaid route since tuition is expected to go up so fast but when I looked at historical costs, the increases in the last 8 years or so have been less than inflation though in the previous 10 they were enormous. University of Michigan actually went down last year! If tuition is going to go up at a rate less than my investment returns I am better off doing traditional 529. I was surprised to find this. Has anyone else found something similar?  <response>: Im certainly no expert on either policy, but if I had to take a wager at whether the economy is going to grow or whether tuition rates are going to keep sky rocketing over the next 18 years and nothing is done about it, I would rather put my money in the economy. I think the likelihood that tuition rates drop during that time, whether due to supply and demand, reform, or whatever reason, is too high and I wouldnt want to get caught paying todays rate. On the other hand, I could guarantee you that the economy and the value of companies will probably be far greater in 20 years, if macro trends are any guide. 