Open a 529 college savings plan without kids

18 years of compound interest is good, but 30 years is even better, and you don't need to have a child to open a 529 plan. I think most associate a 529 plan directly to a kid, but a plan is just that, a plan, and it's very easy to change the recipient. Open one up in your name and use that to get the compounding rolling super early. All that extra time means you can contribute far less and end up with the same amount.

In very oversimplified math, say you want to have $100,000 saved for your potential kid's college. With 18 years to compound you would need to contribute $28,400 of principle. 30 years, though, and it's only $12,300 to reach the same $100,000. (Both assume 7% and use a simplified one time contribution at the beginning of the term. The math is even better if you continue to contribute monthly.)

There are some nice corollary advantages — some state income tax advantages and some assuaging of parental requests for grandkids. Your parents might also be able to contribute to this 529 plan for the imaginary baby too, if that's something you want to talk with them about. It's also nice in that you already have a designated location if anyone asks at a baby shower.

I started ours 8 years ago and we're still a year or three out from kids, if they happen at all. We're already fully funded for two college-bound imaginary progeny on a very middle-class income, and it's really nice to not have to budget or think about it anymore.

If your kid doesn't end up needing the money for college, due to scholarships or GI Bill or some combination thereof, then you can use it for your own retirement or their first house purchase. Or, maybe, put it towards the next gen. 60 year compounding!

NB- Shop around for 529 plans! You don't have to use the one offered by your state, and a different state might offer a better one. Rules have also changed to allow 529 plan funds to be used for a variety of new things like books and homeschooling and housing, so check the new rules too.