Required Steps to Set up a Coverdell ESA for College

The required steps to set up a Coverdell ESA for college are relatively easy now that you’ve done the hard part and determined that this is the right plan for you. So where should you put the money? Any financial institution such as a bank, investment company or stockbroker that handles tradition IRA’s will be happy to help you establish a Coverdell account.

You can put your monies into any qualified investment vehicle such as bonds, mutual funds, stocks and certificates of deposit that are offered at the financial institution. It’s a good idea to ask about their minimum balances and what fees (if any) will apply to your investment.

If you want to be diverse, you can even split the money up between several investments. You won’t find limits on the amount of Coverdell accounts that you can establish for your child. You will find that you are limited to the amount of money you can contribute. It doesn’t matter how many accounts your child has, you can only put away $2000 per year. A word of caution, be sure that the management fees for multiple accounts don’t eat up into your overall savings return.

Your financial institution will need some basic information from you to set up the Coverdell ESA account. You will need your own name and social security number. You will provide the designate beneficiaries name, address, birth date and social security number. Also needed are the name, address and social security number of the individual who will be responsible for the account.

This will be the person who will initially be in control of the ESA. If you are the parent or guardian of the beneficiary, you can name yourself as the responsible individual. Else wise, you will have to name the parent or guardian.

Next, you will inform the provider of the amount of your initial contribution (up to $2000). Sometimes you will need to choose the investment at the time of account set-up. If you open an account with someone like a stockbroker, you can establish a new account and the person responsible will be able to invest it at a later time.

Finally, you will have some choices on the Coverdell account agreement. The provider of the account will probably use the standard form from the IRS. On this form, you will have to choose what happens when the beneficiary turns 18. If you do not indicate on the agreement, control of the account will pass to the beneficiary at that age. It may be a good idea to keep control after the beneficiary turns this age.

This way you can insure that the eighteen year old doesn’t make unqualified purchases from this account. If you want to keep this control, there is a box you must check on the IRS form.

The last choice you will need to make regards changing the account beneficiary. When the account is set up, you decide if you want the person who controls the account to be able to change the beneficiary. If you are the responsible individual, it is advisable to keep this flexibility in case circumstances change. You might want to be able to change the beneficiary in the case of an unexpected death. This would be a protection of the account as a Coverdell ESA instead of it being terminated.

The required steps to set up a Coverdell ESA for college are very easy. Check out your options at any bank or brokerage firm. Today is a great day to start investing in your favorite child’s future.

Getting Past Contribution Limits for 529 College Savings Plans

There are a few major investments that almost every family faces – cars, homes, and of course, college educations for the children. The importance of having a college degree seems to grow every day, but unfortunately, the cost of attending college seems to grow right along with it.

In fact, the cost of attending college is downright prohibitive for some families, and there is no reason to think that this situation will improve any time soon, and every reason to think it will actually get worse. What can you do if money is tight, but you want your child to have access to an education that will help them succeed in the job market?

Scholarships and grants help some families, but they seldom foot the entire bill, and student loans can be an expensive burden to saddle onto your child on graduation day. Another problem with all of these college funding options as well is that it is impossible for you to know if you are getting them until your child is actually ready to enter college.

You can’t wait that long to plan for education financing if you want your child to be able to attend the college of their choice. So, what is a hard working family to do to ensure that they will have the money to put their kids through school? A 529 savings plan can be a great option.

A 529 savings plan is a state run savings account that lets you save money for your child’s education and gives you a tax break for doing so. Anyone can contribute to your 529 savings plan, so if grandparents and the extended family want to help save, they can do so.

Some 529 savings plans function just like normal saving accounts, while others pre-paid accounts for schools that let you pay the tuition of a college in advance.

The idea is that the price you pay today will be significantly cheaper than the price you would pay by the time your child is old enough to attend that school (of course, then you have to hope they want to go there!). These savings accounts allow you to grow your money faster by investing it in the stock and bond market as well.

There is a drawback to these 529 college savings plans, however, and that is the contribution limit. Each state comes up with its own contribution limit, but they generally range from $100,000 to $200,000 per family. That may sound like a lot of money, but is it really?

Would it be enough if your child wanted to attend an Ivy League or private university? Would it be enough to give several children room, board, books, and tuition at even a public state school? If you are facing either of these scenarios, you need to find a way around the contribution limit on these accounts. There are a few things you can do.

You can have relatives set up separate accounts instead of contributing to your account, and you can have accounts in multiple states. You can put your money into different types of accounts – one pre-paid and one savings – for your children. You can also have each parent start an account, if they are unmarried.

The most important thing to remember about starting all of these accounts and getting around the contribution limit is that you will need to understand the tax implications for each account. If you have accounts in different states, each state’s own tax laws will apply to each account.

Each account holder will be responsible for reporting contributions to their own account. All of this extra work may be worth it in the long run, though, so your child does not have to worry about finances will working on their degree.

What Contributing Grandparents need to know about 529’s

What exactly should grandparents need to know about 529 college plans? Some things just seem to go together like hot dogs and baseball, peanut butter and jelly, and of course, grandparents and 529 plans.

It’s a very lucky family that can depend upon grandma and grandpa to help with college tuition bills. College expenses aren’t exactly shrinking. The best gift that anyone could give could be your grandchild’s education fund and a 529 plan is a great way to get started.

A 529 plan is a state sponsored savings plan that invests money on behalf of beneficiaries. The earnings are tax deferred from federal income tax and most states have programs that will defer state taxes. If your grandchild uses the money from this fund for any qualified education purpose, the withdrawals will be free of tax.

Grandparents are allowed to contribute up to $11,000 per year per grandchild. So if Grandpa and Grandma have two grandchildren could place up to $44,000 in funds for the grandchildren without any gift tax liability. The grandparents would each have to set up 2 funds for each grandchild (a total of 4).

Grandparents will still have control over these funds and can retrieve the money if needed. Of course, there will be taxes and penalties on an unqualified withdrawal but the taxes and penalties will only be on your earnings, not on the amount of the original contribution.

The 529 plans have lots of investment options, which create a big decision for the grandparents to make. Grandparents typically are more conservative than the child’s parents. The most popular approach to 529 investments tends to be the age-based option. This is a simple way to save for college. You do not have to personally adjust your allocations over time.

The fund is managed according to the age of your grandchild. Younger children have more of a stock concentration. As your child gets older, the assets are automatically shifted into a higher ratio of short-term investments and more stable bonds.

Grandparents could also check and see if the 529 plan that your have set up will accept a third party contributions. This will take all of the worry about opening and maintaining your own accounts. State tax deductibility may be an issue if you go this route. Some states allow you a deduction for at least part of your contribution to their 529 plans. As a third party donor you will not be eligible for this deduction.

If you ever need to apply for Medicaid benefits, the state will look at your 529 plans as countable assets. You are eligible to take back the money you’ve invested so the money is technically available to pay medical or nursing home expenses. If you have this concern, it is an issue to discuss with your tax professional or attorney. It might be a good idea to make someone else the owner of the fund.

A big concern for grandparents is what would happen to the money in the 529 accounts if your grandchild chooses not to attend college. A great option is to change the beneficiary to another family member or even yourself. You can change the beneficiary as much as you want.

Another option is to take the money in the fund for your needs. The earnings in the account will be subject to a 10% penalty rate and will be taxable as income.  This is some of what contributing grandparents need to know about 529’s. It is a great way to invest in your grandchild’s future. You have picked an incredible gift to give to your very lucky grandchild.

Funding Options for College Bound Students

With so many funding options for college bound students, which one is best for you? Paying for college may be the largest expense a family can have, especially for families with multiple children. There are so many funding options to assist you. Here are some brief descriptions of your options.

A Coverdell educational savings account is a popular plan for college funding. You can contribute up to $2000 per year per child. If you use these funds for qualified education expenses, the earnings are tax deferred and free of federal tax. You select the investments for optimal flexibility.

Section 529 plans are state-sponsored plans that can be used to pay college expenses. This is a tax-advantage plan for approved education-related expenses such as tuition, room and board, supplies and fees. The state generally hires an investment firm as a program manager who provides various investment choices.

You invest in the appropriate portfolios that match your investment time-line and risk tolerance. The two types of 529 plans are prepaid and savings. Prepaid plans (independent) let you purchase tuition credits at member colleges, at today’s rates, for future usage. Savings plans have growth based on the market performance of your investments.

UGMA/UTMA accounts are custodial accounts opened on behalf of a minor. This gift is considered irrevocable with all withdrawals required to be for the minors benefit. The balance of the account is turned over to the minor at the age of majority.

Grants and scholarships are “free money” options that don’t have to be paid back. This is a debt-free way to fund an education. Financial need typically must be demonstrated to receive a grant. Scholarships are usually based on merit.

Work-study programs provide part-time employment from the federal government to earn money for college. This program is not only in place to help to fund college, but a work-study job can provide essential work experience.

Federal student loans are low interest, long-term loans for students. These loans offer attractive repayment options including being able to post-pone payments while attending college and in times during repayment of financial difficulty. There are federal loans for both parents and students. The best know ones are Stafford Loans for students and PLUS for parents.

A lot of people turn to these programs for their funding needs. You can also often find private loans that have low interest rates for college students. Be sure to choose a reputable lender who in knowledgeable on loan choices if using a private lender.

Tuition payment plans are an interest and debt-free way to spread payments over several months. Not all colleges offer this plan. Typically used by families who have income that will cover the gap between the amount they are billed for college and the amount of financial aid received.

Assets of a family are often used to fund college. IRA’s, savings accounts, 401k plans and stocks offer a debt-free way to fund an education. As a word of caution, before you liquidate one of these accounts, consider the earnings you may be missing out on. Use this number as a comparison to the amount of interest you would incur from a student loan plan.

Credit cards are often a popular but poor choice for funding a college bound student. This is for the simple fact that interest rates can be high. Use this funding choice with caution.

It’s important to think about your own situation as you plan to fund your education. Establishing a savings plan at an early age will make a huge difference. There are lots of funding options for college bound students. Which one makes the most sense for you?

The Pros and Cons of the Coverdell ESA for College

As you’re setting up investment plans for your child’s college, it’s smart to be aware of the pros and cons of the Coverdell ESA for College. This educational savings account is a very attractive savings plan for many people. Let’s take a look at some of the negatives and positives of this program and so you can see if it’s a fit for you.

Pro- The Coverdell Education Savings Account can be self-directed with a wider array of investment products available than a 529 plan. The account can be placed in almost any sort of investment. Typically, stocks, bonds, bank CDs, mutual funds and unit investment trusts. No part of trust assets may be invested in life insurance contracts.

Pro- The Coverdell funds are available to finance elementary and secondary school, not just college. This includes items such as tuition, fees, tutoring, books, supplies, room and board, uniforms, transportation and computers.

Pro- Earnings accumulate tax-free. Qualified distributions are exempt from federal income tax. Please note that contributions are not deductible on federal or state income tax.

Pro- Corporations may contribute. This even includes tax-exempt organizations. Regardless of income level, corporations may contribute to an individuals Coverdell account.

Pro- People can contribute to both a Coverdell account and a section 529 plan in the same year. Note that there may a gift tax implication if you give more that $12,000 per beneficiary.

Con- Contributions to the Coverdell ESA are limited to $2000 per beneficiary per year. Here’s an example, you have a son and a daughter that you want to contribute $3500 into Coverdell accounts for. You deposit $2000 to your son’s account and $1500 into your daughter’s.

Their grandmother wishes to add another $1000 but she is only allowed to put $500 into your daughters account as the $2000 limit has been reached. At $2000 a year, it would be tough to have this be your entire college savings plan.

Con- Contributions can only be made until the beneficiary reaches age 18. This may be a non-issue with some families but a 529 plan would allow you greater flexibility. There are no age restrictions for special needs beneficiaries.

Con- The money must be used by the time the child reaches the age of 30. If the funds are not used, the earnings will be taxed as ordinary income plus a 10% penalty.

Con- There is less flexibility in changing beneficiaries in a Coverdell ESA. Coverdell plans are considered permanent gifts. You cannot open up an account for your child and take back the money for your own use. Typically, the parents are responsible for the account until the child reaches 18. Then, the beneficiary usually takes control of the account. There is some ability to change beneficiaries.

Con- The Coverdell ESA is not eligible for the state tax deductions available for some 529 plans. The available 529 state tax deductions vary from state to state. Of course, a tax deduction is not the only reason to select an investment.

Con- The contribution limit is phased out for contributors with an adjusted gross income between $95,000 and $110,000 for single people and between $190,000 and $220, 000 for joint filers. A clever way around this con if you’re in this income bracket is to give the money to your child and let her open a Coverdell for herself.

After looking at the pros and cons of the Coverdell education savings fund, you can see if this is a wise investment for your child. The items that have been identified as cons are non-issues for many people. Coverdell is a good investment overall for most families. Talk with your tax profession and see if it’s right for you.

Viability of US Savings Bonds to Fund College

Saving for college has become a priority for many American families. With most university tuition rates climbing every year at record pace, it can seem nearly impossible to send your children to a good college or university without going into deep debt. But it doesn’t have to be that way. With a little planning, you can make your college savings plan go a long way.

Using a US Savings Bond to Save for College

Many parents with young children wonder if it is viable to use US savings bonds as a savings vehicle for their children’s future education. The truth is that a US savings bond can be a great way to save for college for many families.

Most US savings bonds offer competitive interest rates, and they come with the added security of being backed by both federal and state governments, as well as being subject to certain income tax benefits from both levels of government. Here is some information about saving bonds and what they can do to help you save money for your child’s college education.

The Series EE Savings Bond

One of the most popular US savings bond vehicles that are purchased by parents who are looking to save money for their children’s college education is a US savings bond from the series EE savings bond series. Analysts have recently estimated that a US savings bond from the series EE that was purchased in 2006 will likely earn 3.2 fixed interest rate percentages over the life of that bond.

The Series I Savings Bond – AKA the I Bond

What about the series I savings bond? It is also commonly known as the I bond. What is the difference between the series I savings bond and a series EE US savings bond? The main difference is that the series I savings bond carries an interest rate that is determined by the federal government.

In general, the federal government determines the interest rate for the series I savings bond by determining a basic low fixed rate, as of now that is one percent, and then adding on an inflation rate to that that reflects the latest increases in the consumer price index.

How to Make Your Money Grow with a US Savings Bond

Regardless of whether you choose an I US savings bond or a Series EE savings bond, here are some basic things you should know about how to make your money grow. First, you should always wait at least one year before cashing in your US savings bond.

You should also know that in most cases you will forfeit at least three months interest if you decide to cash in your US savings bond within five years of your initial investment date.

Tax Incentives of US Savings Bonds

In most cases, you will find that your US savings bond comes with many attractive tax benefits. For interest, you will not have to pay taxes on your interest on your state tax form, and in many cases, your interest may also be free from federal taxes.

Why a US Savings Bond May Be a Better Option than a 529 Investment

In most cases, analysts predict that a US savings bond will tend to perform better than many 529 college savings investment plans. However, this strictly depends on what kind of 529 college savings investment vehicle you have chosen.

Some state 529 college savings plans will indeed outperform a US savings bond over the long haul. Much of this depends on the condition of the market in future years, inflation trends, and a number of other fluctuating conditions.

Pros and Cons of Pre-paid Tuition vs. 529 College Saving Plan

There are so many ways for concerned parents to plan for their children’s future educational expenses. There are federal and state educational tax credits, savings bonds, savings accounts, and now, states 529 college savings incentives programs. These state 529 college savings incentives programs are relatively new, and many parents do not know whether they are suited for their financial needs.

We investigate the nature of these state 529 college savings incentives programs and what you can expect from the different types of state 529 college savings incentives programs.

Pre-paid Tuition vs. 529 College Savings Plans – Two Sides of the Same Coin

Many parents find themselves trying to decide between investing in either a pre-paid tuition program or a state 529 college savings incentives programs. The truth is that both of these represent two sides of the same coin. In truth, both of these types of plans are officially known as ‘section 529’ plans because they are both described under the same tax code and are subject to many of the same benefits. Even so, they are different and are often subject to different restrictions and benefits.

What’s All the Fuss with State Pre-Paid Tuition Plans? Pros Offer Peace of Mind

Again, a state pre-paid tuition plan is just another kind of a state 529 college savings incentives program. When it comes to a state pre-paid tuition plan, here is the basic gist of it. A state pre-paid tuition program, as the name implies, allows you to pay for your child’s tuition rates right now.

That means that you can, in essence, ‘lock in’ the current tuition rate. That way you will not be subject to the rising costs of tuition rates. This is a concern for many parents, who watch the current trend of rising tuition costs every year in despair.

Pre-paid Cons - Restrictions Abound with Pre-Paid Tuition Plans

Pre-paid tuition plans can come with associated restrictions, so make sure you understand them before you enroll. First, there is generally a firm age limit on state pre-paid tuition plans. Most state pre-paid tuition plans have a broad age limit that usually ranges from the time your child is a newborn to the time they are a senior in high school, but make sure to note the age limit when you are considering plans.

Also, there often restrictions on when you can enroll in your state’s pre-paid tuition plan. These pre-paid plans usually have special enrollment periods that mirror the enrollment period for insurance plans and the like.

Consult your state’s web site if you are not sure when to enroll. Furthermore, most state pre-paid tuition plans have restrictions on the types of expenses that they will cover. In most cases, state pre-paid investment plans will cover just that –state tuition and mandatory associated fees.

Considering a Traditional 529 Savings Plan? Pros You Can Live With

What about state 529 college savings incentives programs? Like most pre-paid college tuition programs, a state program allows you access too many federal tax incentives, including tax-free withdrawals, HOPE and Lifetime Learning tax credits, and other favorable federal tax credits. In general, a state 529 college savings incentives program allows you maximum flexibility. Most allow year-round enrollment and do not carry age limits.

Keeping Up With Inflation – Cons of the Traditional 529 Savings Plans

There are some cons associated with many state 529 college savings incentives programs. Some argue that while saving for college is good, some 529 savings plans may not be able to keep up with the growing trend of tuition increases. Like any type of investment, state 529 college savings incentives programs may simply lose their value over time.

What the TIPS Means in the 529 College Savings Plans

In order to understand what the Treasury Inflation-Protection Securities (TIPS means in 529 plans it is important to understand what a 529 Plan is. A 529 Plan is an investment plan to save specifically for a college education.

The 529 Plan, named after the code in the IRS tax code corresponding to the plan, is often used by parents as a way to set aside money for a child’s future college education when they are still young that utilizes investments in stocks and other investment tools in order to not only put money aside for that child’s college education but to increase the amount of the original investment through interest rates and return rates on particular investments.

Since the 529 Plan is a state based investment, the state sets up an account with an asset management company of its own choice and the parents open a 529 Plan account with that asset management company. The parents deal directly with the asset management company, not the state. When parents sign up for a 529 Plan they have two options in terms of how they structure their investment.

The first option when investing in a 529 Plan is to prepay tuition at a participating educational institution at the current tuition rates, guarding against tuition inflation. The downside to this option is obviously that the child must then attend that particular college and won’t have a have a choice of schools when it is ready to move forward to a college education.

The child may not want to attend that particular school or may not have the credentials necessary to be admitted to that school. Parents also take the risk that school will no longer be in business by the time the child is ready to attend. The advantage is that with the huge rise in tuition costs yearly the parents will be able to lock in a low tuition rate for their child’s education.

The second investment option when investing in a 529 Plan gives parents the chance to put money into a tax-deferred earnings account that can only be used to pay for their child’s education.

The advantage of this method is that the child can attend any college they choose or can qualify for. The disadvantage is that parents will be paying the current tuition rate at the time that the child attends the college, which might be significantly more than the tuition rates offered now.

Regardless of which plan the parents choose, the basic idea of the 529 Plan is the same. Parents are investing money with the idea that the earnings on that investment will grow to meet the costs of a future college education for their child. The second option is usually the one preferred by parents.

When parents open a 529 Plan account they are agreeing to let their investment be handled by the asset management company chosen by the state. The asset management company may decide to put part of the initial investment in stock and part of the investment in fixed-income securities to maximize the return potential and the potential growth of the investment.

This type of allocation plan is preferred because it offers investors a balanced return over the period of the investment. In order to protect the investor against rising inflation costs, as much as one half of the investment that is designated for fixed income securities can be placed in Treasury Inflation-Protection Securities or TIPS which provide protection for the investor against inflation.

So asset management companies invest the money of parents who are buying 529 Plan accounts to pay for their child’s future education in Treasury Inflation-Protection Securities or TIPS to protect that investment from inflation over the course of the investment term.

Important Steps to Take when Saving for College

It’s time to look at some important steps to take when saving for college. The time to save is right now. It’s never too late to state a plan. Consider these tips for education savings.

Step 1. Start early. The sooner you start saving, the less you’ll need to save each year to reach your goal. The day your child arrives is not too soon to begin saving! You can take advantage of investments that promise greater returns. You can take advantage of volatile investments that are too risky for short-term college savings.

Step 2. Set up a budget. You should make a savings goal. Look at the Internet for a college cost calculator to get a rough idea of what you need to save. Then figure out how much you can put away each month to reach this goal.

Step 3. Save regularly. Get into the habit of investing a set amount of money monthly. This will set the habit of education future planning. Not a good saver? Have an automatic payroll deduction made or an automatic deposit withdrawn. This way the money is out of your checking account before you can use it.

Step 4. Use professional assistance. That’s what they’re there for. Unless you are a financial wizard yourself, talk with an experienced accountant, financial advisor or lawyer. Ask what they are doing for their children. It helps to know that your advisor can personally relate to your college savings strategy.

Step 5. Think about a 529 plan. Even if you haven’t started saving as early as you had planned a 529 plan or even a Coverdell ESA are still useful. The 529 plans offer many tax advantages. Your money will actually grow in a tax-deferred style and if your withdrawals are qualified, they will be exempt from federal income tax. Many states even give tax deductions from state income tax. Check with your state’s 529 provider for more details.

Step 6. Save in the parent or guardian’s name, not the child’s. This minimizes the impact of the fund on need-based financial aid. Also, this will prevent an irresponsible child from using their education savings fund or 529 for non-qualified purchases.

Step 7. Diversify your investments. For example it is better to invest in mutual funds than just stocks. Mutual funds spread out the risk over many stocks, which can prevent the drop in value of one stock from ruining the value of your whole portfolio. Or invest in both stocks and bonds. A good plan would be to have a mix of high and low risk investments.

An age-based 529 savings plan is a simple way to balance your portfolio. Younger children have a higher percentage of high-risk investments than older children. As children are just a few years from college, an age-based 529 plan would have almost all funds invested in low risk investments.

Step 8. Be flexible. A great new college program may be available just a few short years from now. Tax laws will change and your income circumstances may change, too. Review the steps you’re taking from time to time and be willing to make adjustments.

If you find that the assumptions behind your investment plan are not correct or your tolerance for risk has changed, you may need to change your investments. Don’t sell an investment just because the market is low; sell because of how the investment is predicted to do in the future.

There are so many important steps to take when saving for college. Any money you are able to tuck away today makes the road to college that much smoother for your child.

The Lowdown On Prepaid vs Savings 529 College Savings Account

As costs keep mounting out of control trying to decide which plan to save for college is becoming harder and harder for every parent. Two savings plans have popped up recently that may help take the sting out of the high cost of college education for future students. The prepaid plan vs the 529 college savings plan. Which will work best for you is dependent on many different factors that we will look over.

Some things in common with both plans is you need to start young and that can't really be enforced enough with any kind of savings plan for college. The prepaid plan is where you buy tuition credits at today's rates and use them when your child is ready for school. This helps defray the costs for you. The biggest drawback in this program is you really don't know how many credits you are going to need.

This is dependent on what your child's major could be and also which college they decide to go to. Now you may also have to factor in that not every college will participate into the program. These are all things to consider before going with the prepaid route.

The 529 college savings plan is where you put into an account and let it grow over time. This is tax free and you can start this when they are real young and have a nice little sum waiting for the college student when they are ready. The biggest drawback with this play is the fees they charge for this. These fees are starting to get lower, but vary from state to state.

As Congress has stepped in and helped watch these programs they are getting better and are becoming more user friendly than ever before. At one time many of these prepaid and college savings plans were changing about every six months, which made picking a plan for your child almost impossible. So, which plan is best for your child? This will depend on many factors.

Costs are always going up and that will never change. Probably one of the first things to look is a two year or four year college. If the two-year college is in your child's future than probably the prepaid system may work best for you. Now if the four-year college is more to their liking than maybe the investment would work out a lot better.

Each case is different and it will take time and research to determine which is best. The other factors will include where you can get the best deal and how much you have to pay out is always something to consider. Different states have different plans and watch out for brokers who will try to sell you higher policies in other states. Do a little research and you could save a lot of money in the long run.

Don't be afraid to ask questions and get the answers you need. It's your money you’re spending and your child's education is one of the investments that will last a lifetime. Nothing is wrong with getting the best for your money. Prepaid or savings account is something you will need to decide and which one fits best into your budget.

Both plans are good, but have drawbacks that you will need to consider. No matter which one you choose though the money you save will be worth it as your child or grandchild will reap many benefits from your wise decision early in their life. Education is knowledge and as they know more they will earn more just a fact of life.

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