Comments on: Considering A Coverdell Education Savings Account?

By: What is the Difference Between Saving and Investing?

What is the Difference Between Saving and Investing? — Mon, 21 Jun 2010 09:03:29 +0000

[...] entering college. If college is 18 years away, the money should be invested (make sure you use an ESA or 529 plan to get all of the tax breaks). But what if college starts four years from now? You [...]

By: 529 College Savings Plans vs Coverdell ESAs, My Choice | Money Reasons

529 College Savings Plans vs Coverdell ESAs, My Choice | Money Reasons — Sat, 01 May 2010 05:00:53 +0000

[...] Considering A Coverdell Education Savings Account? [...]

By: Money Reasons

Money Reasons — Wed, 28 Apr 2010 01:05:30 +0000

@Kris
Thanks for the tips! My 529 has just done okay… but it’s better than nothing.

The beauty of a Coverdell is that you can invest in almost anything, stocks, bonds, etfs, mutual funds, etc… So if you are gived in that way, an ESA might be the way to go for you!

By: Kris

Kris — Wed, 28 Apr 2010 00:25:29 +0000

I have a sophomore in high school now so I have been really researching colleges. I have found the following:
1. It is hard to get money from public schools unless you are financially needy or have an athletic scholarship. For instance a friend of mine’s son is at the University of Michigan (which is 23k a year). He was top of his class, had a 35 on the ACT and did not get a dime of scholarship or aid money.
2. Private schools may be twice as much, but they have huge endowments and many give money quite freely. Therefore, do not let the price tag of a private school scare you away.
3. Have your child study for that PSAT. If you do well on that, then many colleges become aware of your child very quickly.

On a separate note, I love my 529 plan. Michigan has a pretty good one,and it give me a good tax break too.

By: Money Reasons

Money Reasons — Tue, 27 Apr 2010 23:15:07 +0000

@Mrs. Money
For me, it depends. I went to a state college, and paid most of my way and was fine.

But let’s say our kids are gifted, and end up going to a private university. Well, in those cases the cost can roll to more than $200,000 (in the next 10 years) when they are in school. No matter how hard my kids try, they aren’t going to be able to afford it without going into massive debt.

I wish college level education wasn’t so expensive… but it is! And I say let’s prepare for it the best that we can.

That said, I don’t think the Coverdell ESA is the best option for my family. The contribution amount is too limiting.

By: Mrs. Money

Mrs. Money — Tue, 27 Apr 2010 21:55:02 +0000

We don’t have kids yet and I think about what we’ll do for their college funds. I think I want them to pay for at least part of it.

By: Evan

Evan — Tue, 27 Apr 2010 17:56:59 +0000

I never really understood why anyone would choose the Coverdell until I came across a situation where a family wanted to use 529 money for a private HS – can’t do it unless you have a coverdell