Safely Save for Your Childs University Studies Using An Education IRA!

This investment retirement account (IRA) is useful to you as an investor to understand because it may be a good way for you to save for your kid's education AND save on taxes. These plans are now called Coverdell Education Savings Accounts in honor of the late U.S. Sen. Paul Coverdell. Individuals can make annual contributions of up to $2,000 per child into an account that's exclusively for helping to pay higher education costs. The money contributed to a Coverdell account doesn't count against the $3,000 ($3,500 if 50 and older) annual total individuals may contribute to their combined personal individual IRAs.

The earnings and withdrawals from a Coverdell account are tax-free, but you can't deduct the contributions from your income tax because the account is for the benefit of the child, not the contributor. This is great for parents who are good savers and investors who want to make an annual tax-saving contribution that they can invest in the stock market toward the education of a studious and responsible child. In addition, if your child received a Coverdell ESA distribution, you now can also claim Hope Scholarship or Lifetime Learning credits. Just make sure you don't use Coverdell money to pay for the same expenses you use to claim an education credit.

The beneficiary (your child) of the education IRA must withdraw the funds by age 30 if they don't go to college and pay taxes and penalties on it. However, the account can be transferred to a sibling or the beneficiary's child if they don't pursue a higher academic degree or use it all.

Once you have the account open you can use the stock market to help finance your child's education selling the stock at a high price after you have bought it at a low price using techniques such as I teach.

ABOUT THE AUTHOR: Dr. Scott Brown, Ph.D., a.k.a. "The Wallet Doctor", is a successful futures trader, real estate investor, and stock investor. Dr. Brown holds a Ph.D. in finance from the University of South Carolina. His 1998 articles in Technical Analysis of Stocks and Commodities were prophetic in predicting an impending stock market crash. He has helped many people become profitable investors by teaching them to look out over many years to spot stocks that are low and primed for rise in the new bull market. His second article met with approval by Dr. Bob Shiller of Yale University. Dr. Shiller is the economist that Alan Greenspan most highly regards who coined the term "Irrational Exuberance." In 1998 he shouted to the world to "get out" of the stock market but now he is shouting to everyone that it is time to "get in!" The Wallet Doctor is not only sought after for investment advice and coaching in stock investing but also in futures trading and real estate investing.

Visit Dr. Brown's site at http://www.BonanzaBase.com or sign up for his investment tips at http://www.WalletDoctor.com

In The News:

pen paper and inkwell


cat break through


Is There A Retirement Crisis?

When people speak about the increasing age expectancies, they generally... Read More

How To Free-Up 10% to 15% of Your Income

Would you be interested in freeing up 10% to 15%... Read More

Why We Are Never Satisfied with What We Have

I have to admit, I do it too. I complain.... Read More

Take Control and Master Your Kitchen

Those who keep a watchful eye on where their money... Read More

The Changing Shape of Family Finances

Super-mumsIt seems that the proof of maternal efforts is no... Read More

Saving Money On Gasoline For Your Automobile

The gas that we fill our tanks with every week... Read More

The Wonderful World Of Address Labels

Ever wonder where address labels come from? AveryŽ is perhaps... Read More

Do You Really Need the Power of Money Management Software?

I have been a loyal user of Quicken(R) for more... Read More

The Good and the Bad of Money Management

Good money management needn't be difficult. In fact, there a... Read More

Help With My Annuity

The cries are heard from the distance, "I need help... Read More

Saving Money - The Magic 20 Percent

Saving money is not easy and is made more difficult... Read More

Know Thy Finances

The first step to financial success lies in knowing your... Read More

How to Attain Your Dreams on a Single Income

If you recently became a single parent and see your... Read More

Stretching Your Grocery Dollars

Shopping for groceries is an inevitable fact of our ever... Read More

One Income Source Is Not Enough!

My personal opinion is that in today's new economy, it... Read More

Personal Loans For Homeowners ? One Of The Numerous Rewards For Being A Homeowner

You no longer look at the pictures of homes cause... Read More

I Want to Buy a Home - Now What?

If you were to ask 100 women "What would you... Read More

Save Money on Groceries: Part I

One universal of humanity, no matter who you are or... Read More

Saving Dimes Can Go a Long Way

On the other hand, there are those people who are... Read More

Understanding and Controlling Your Finances

Have you ever wondered what it would be like to... Read More

7 Simple Ways To Save Money

Each of us knows how to spend money, but do... Read More

When do You Need a Financial Management Company on Your Side?

We live in a crazy world. Someone ought to sell... Read More

Introduction to Australian Superannuation

Australians, in general, constitute some of the worst savers in... Read More

Bankruptcy Chapters Explained

Chapter 7The potential chapter 7 debtor should understand that a... Read More

Im Broke, How Can I Afford...

I'm still amazed every time someone comes to me complaining... Read More

Kundalini Lessons - Money

I've been going through and interesting growth period lately that... Read More

Budgeting is Bothersome

It doesn't take much for you to get behind on... Read More

First Checking Account ? When is it Time?

We all know that money doesn't grow on trees, but... Read More

How to Balance Your Checkbook ? Get a Calculator and Pencil and You are Ready To Go!

Despite how easy it is to balance a checkbook, very... Read More

Planning Ahead with Your Finances

If you, like most people, have not seriously considered what... Read More

How to Choose the Right Bank for Your Online Business

You should thoroughly consider your business needs when selecting a... Read More

University: A Course in Personal Finance

Recent findings from the Educational Policy Institute indicated that the... Read More

The Magic Of Compound Interest

Christians are called to be good stewards of God's resources.... Read More