Presented by Daniel Toriola
College Textbooks are a simple fact of college life that cannot really be avoided. How are you supposed to learn
without books to guide you and help make sense of your professors’ words? Textbooks play important roles in
a student's college life.
Click here to know more
Not All Web Hosts Are The Same. Some Are Really Responsive To Customers. Backed By a 30 Day No
Questions Asked 100% Money Back Guarantee, 99.9% Uptime Guarantee. Read What Our Clients Say About Us!
Click here to know more
College Planning: Education IRA or 529 Plan?
By Frank Rodriguez
With the costs of college rising at a rate that is twice the rate of inflation, college planning has
become more critical than any time in the past. Whether you plan to have your kids go to a community
college, and then transfer to a four-year college or go directly to a four-year college it's going to be
costly. Thankfully, there have been resent plans set up, so that you can save for the rising costs
associated with college. Both the Education IRA (Coverdell ESA) and the 529 plans offer good ways to
save for college.
The Education IRA, or Coverdell ESA, is one of the simplest ways to save and find a child's education.
The Education IRA acts similarly to a basic IRA, in that you are limited in the amount of contribution
you can make within a given year. Also, there are income restrictions, so if you make over a certain
amount of money each year (currently $110,000) you are not eligible for Education IRA contributions.
The Coverdell Education IRA is a great tool when saving for college over time. Obviously, contributing
$2000 a year for four years isn't going to fund your child's complete education. This is why starting in
Education IRA as early as possible makes all the difference in the world. We know that from financial
planning basics that time is the most important factor in achieving our financial goals, investment return
is secondary. When it comes to selecting investments within an Education IRA, you can choose just
about any in