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

---

Know Thy Finances

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

Students Investing in Their Future Need to Manage Their Finances Today

With the A-level results coming out, the long wait for... Read More

Personal Finance - Have Consumers Had a Belly Full of Personal Debt?

For months, we were trigger-swipe happy, putting our groceries, clothes,... Read More

Planning Your Financial Future

Millions of people give a lot of thought to financial... Read More

Planning Ahead with Your Finances

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

Understanding Your Finances Can Give You Power And Choice

What is finance and what do you need to know?... Read More

How To Reap The Rewards With Rewards Programs

Recently, many of these loyalty rewards programs have come to... Read More

Save On Food - Ten Tips

To save on food, be an opportunist. Buy what you... Read More

What is ChexSystems?

Commonly referred to as the first of the three major... Read More

Money Saving Tips. Maximize Savings on Everyday Items!

Frugal living is more than a lifestyle. It's a passion.... Read More

Top 10+ Ways to Jumpstart your New Year?s Finances!

Of course, these don't have to be done in any... Read More

Improving Your Financial Position

If you want money you need to learn how to... 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

The Wright Place - Finances

Women have a love/hate relationship with money. Most of us... Read More

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

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

Debt Management ? Watch Out for Bank Fees!

During the last twenty years, banks have offered a number... Read More

Single Mother and Learning how to Save

Saving may seem easier if you were saving for a... Read More

Why Live Frugally

What is it about being frugal, why do it at... Read More

Why We Are Never Satisfied with What We Have

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

Budgeting Tips to Save Real Money

Sticking to a budget can be difficult, but with so... Read More

University: A Course in Personal Finance

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

The Good and the Bad of Money Management

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

Save Money Off Your Home Utility Bills

Many don't realize that our basic utility bills provide the... Read More

One Income Source Is Not Enough!

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

Budgeting your Savings - Did You Let Your Piggy Bank Get Away?

I think most of us have at some point in... Read More

10 Money-Saving Tips

1. If you have your haircut every 3 weeks, try... Read More

The Joys of Address Labels

Address labels are many things to many different people. If... Read More

5 Ways to Absolutely Destroy Your Finances!

Ben Stein has a book called How to Ruin Your... Read More

Save Money on Gas

Gas prices have soared to unimaginable heights of late. Since... Read More

Creating A Household Budget

Creating a budget can be a very difficult task. Although... Read More

Car Donations and Used Car Donations

Car donations and used car donations are the way many... Read More

How To Place an Online Order for Checks ? It is Easy as 1-2-3

If You Have an Existing Account and 5 Minutes, You... Read More

How You Feel Affects How You Shop & How Much You Spend

Have you ever stopped to think about how your "mood"... Read More