Home

education Directory


More
education Articles

WRITERS WANTED! (click-me)

Feature Article:

Education Leads To A Healthier And Happier Life
Do you feel you lead a healthy and happy life? If you answered yes, chances are you have received some sort of college or post secondary (post high school) education. If you are an adult, and don’t have an education, an online education may be...

Alzheimer’s Education Conference At Kravis Center to Feature Dr. Peter Rabin and Olga Brunner
Olga Brunner founder of A Good Daughter, Inc., based in Margate, Florida (www.agooddaughter.com), will present at the Kravis Center on May 19th & 20th. The 2005 Alzheimer’s Educational Conference will host only 50 companies to exhibit at this event,...

worldabooks.com

3 Alternatives For Investing For Your Child's Higher Education Costs

worldabooks.com       Navigation

With higher education tuition increasing at double digit year over year percentages an effective saving plan for your kid's education is becoming much more important than it has been before. Most families will discover that their future higher education costs will be much more than they have saved for their kid's education. This leaves many kids to be faced with obtaining financial aid to pay for a portion of their college education. The goal of this article is to explore the pros and cons of 4 common investment options when saving for college. This article will also explore why some of these options are better than other when considering a portion of your kid's education may be funded by financial aid.

529 College Savings Plan: - A 529 college savings plan is a fairly new investment option for college saving. It allows just about anyone to save for college. There is a long list of benefits of a 529 college savings plan, but perhaps the most important is that your earnings grow tax free if you use it for qualified education expenses. Additionally, the maximum amount you can contribute to a 529 plan can go as high as several hundred thousand dollars depending on your State. In the event you do not use the funds for college, you can still withdrawal your earnings, but you will have to pay taxes and a 10% penalty. The penalty will be waived if your child receives a scholarship, or your child becomes disable or dies.

529 plans can typically be purchased through a broker or mutual fund company, but a disadvantage is that investment choices can sometimes be limited. Since qualifying for financial aid is based on a calculation that considers your kids assets, another big benefit of a 529 college savings plan is that the money in the plan is classified as a parents assets so less that 6% of the value counts against your kid's financial aid eligibility.

Uniform Gifts to Minors Act/Uniform Transfers to Minors Act

(UGMA/UTA Custodial Account): - The benefit of a UMGA/UTA Custodial Account is that there is no limit on the contribution and it is easy to set up at most financial institutions. However, the limitations far outweigh the benefits. The first limitation of a UMGA/UTA Custodial Account is that these types of accounts offer very little tax advantage. If your child is under 14, only the first $800 of income is tax free, the next $800 is taxed at your child's tax rate and after that there is no tax benefit at all. The other big limitation is that the account has to be set up in your child's name. As a result, if your child needs financial aid all of the assets will be reviewed at a 35% rate. Therefore, this type of account is not advisable for those who may need financial aid.

Coverdell Education Savings Account (CESA): - A Coverdell Education Savings Account is very similar to a 529 college savings plan. The main difference is that with a Coverdell Education Savings Account you can only contribute $2000 per child and to qualify your adjusted gross income must be less than $110,000 if single and less than $220,000 if married filing jointly. The account is classified as a parent's asset so less that 6% of the value counts against your kid's financial aid eligibility.

In the end, parents should consider planning for college to be a highly important process. The above 3 alternatives can make this process much more easy and financially sound.

Copyright (c) 2005, by Jay Fran. This article may be freely distributed as long as the copyright, author's information and the below active live link is published with the article.
About the Author

http://www.motorcycle-financing-guide.com/directory/directory.php Jay Fran is a successful author and publisher at Motorcycle-Financing-Guide.com, a website that offers a wide selection of online motorcycle lenders providing online application facilities for motorbike - motorcycle loans or motorcycle refinancing.

worldabooks.com

More Reading:


Online Education From Satellite Locations

Take an Education Vacation

Home Study Driver Education or Classroom Course

Financing A College Education

Benefits Given for a Student Software Education

 
Online Education Busts Public Schooling

Saving For Post Secondary Education

The Secret Of Your Childrens Education

Day Trading Education How to pick HOT STOCKS in 2006 Learn Day Trading

Career Education Options For Working Adults

education Home

education Directory

Additional Reading


Student Loans: The Life Preserver Of Our Education System
A loan is the reason many students are able to go to college and not have to worry about money until after they've graduated. There is a lot of paperwork involved in the application process of a loan, but once you've completed it and been accepted,...

Education loans can augment the boundaries of what you can achieve
Education never ends – it is not said without reason. We are educated all our lives and getting an education not only is a great achievement but something that gives you the tools to find your own way in the world. Education is indispensable;...

How to Buy & Sell Shares ... STOCK TRADING EDUCATION & Day Trading Tips
The stock market can present you with a lot of hot stocks every day. Many of them are new technology stocks that come from the nanotech, biotech, voip, healthcare, homeland defense or internet sectors. Most of them may seem promising, but the...



 

 

Internet Search for: college, education

[an error occurred while processing this directive]

 

Copyright    worldabooks.com