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Safely Finance Your Child's University Studies Using An
By Dr. Scott Brown, Ph.D., Sat Dec 10th

This investment retirement account (IRA) is useful to you as aninvestor to understand because it may be a good way for you tosave for your kid’s education AND save on taxes. These plans arenow called Coverdell Education Savings Accounts in honor of thelate U.S. Sen. Paul Coverdell. Individuals can make annualcontributions of up to $2,000 per child into an account that'sexclusively for helping to pay higher education costs. The moneycontributed to a Coverdell account doesn't count against the$3,000 ($3,500 if 50 and older) annual total individuals maycontribute to their combined personal individual IRAs. Theearnings and withdrawals from a Coverdell account are tax-free,but you can't deduct the contributions from your income taxbecause the account is for the benefit of the child, not thecontributor. This is great for parents who are good savers andinvestors who want to make an annual tax-saving contributionthat they can invest

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Financing Your Child's Education
<p>Did you know that a four year degree at a public university may cost upwards of $100,000 in 18 years? That's bad news for new parents who expect their kids to go to school, but fortunately it isn't that hard to save up the money needed for college if you start early. Time is on your site if you start early, but it becomes your enemy if you wait too long. So, here's <a href="http://clk.about.com/?zi=1/1hc&#038;zu=http://financialplan.about.com/od/savingforcollege/a/Financing-Your-Childs-Education.htm">how to finance your child's education</a>.</p><p style="background:#f5f3ef;border:1px solid #d5d0bf;clear:both;padding:.5em;"><a href="http://clk.about.com/?zi=1/1hc&#038;zu=http://financialplan.about.com/b/2012/04/30/financing-your-childs-education.htm">Financing Your Child's Education</a> originally appeared on <a href="http://clk.about.com/?zi=1/1hc&#038;zu=http://financialplan.about.com/">About.com Financial Planning</a> on Monday, April 30th, 2012 at 14:51:31.</p><p><a href="http://clk.about.com/?zi=1/1hc&#038;zu=http://financialplan.about.com/b/2012/04/30/financing-your-childs-education.htm">Permalink</a> | <a href="http://clk.about.com/?zi=1/1hc&#038;zu=http://financialplan.about.com/b/2012/04/30/financing-your-childs-education.htm#gB3">Comment</a> | <a href="http://financialplan.about.com/gi/pages/shareurl.htm?PG=http://financialplan.about.com/b/2012/04/30/financing-your-childs-education.htm&#038;zItl=Financing Your Child's Education">Email this</a></p>


in the stock market toward the education ofa studious and responsible child. In addition, if your childreceived a Coverdell ESA distribution, you now can also claimHope Scholarship or Lifetime Learning credits. Just make sureyou don't use Coverdell money to pay for the same expenses youuse to claim an education credit. The beneficiary (your child)of the education IRA must withdraw the funds by age 30 if theydon’t go to college and pay taxes and penalties on it. However,the account can be transferred to a sibling or the beneficiary'schild if they don’t pursue a higher academic degree or use itall. Once you have the account open you can use the stock marketto help finance your child’s education selling the stock at ahigh price after you have bought it at a low price usingtechniques such as I teach.

About the author:ABOUT THE AUTHOR: Dr. Scott Brown, Ph.D., the Wallet Doctor, isa successful investor. Dr. Brown holds a Ph.D. in finance. TheWallet Doctor is sought after for investment advice andcoaching. For more information visit Dr. Brown’s site atwww.BonanzaBase.com or sign up for his investment tips atwww.WalletDoctor.com

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