tag:blogger.com,1999:blog-4009416706187449080.post4756875379123693222..comments2024-03-25T04:35:40.423-05:00Comments on Daddy Financials: Coverdell IRA vs. 529 plan for College SavingsUnknownnoreply@blogger.comBlogger26125tag:blogger.com,1999:blog-4009416706187449080.post-59113455387149562472019-01-24T01:40:21.208-05:002019-01-24T01:40:21.208-05:00very good blog. You shared very interesting post w...very good blog. You shared very interesting post with us. Check out the <a href="https://www.medtravels.in/cardiology" rel="nofollow">best cardiology surgery hospitals</a> in India. Anonymoushttps://www.blogger.com/profile/14324914380843251133noreply@blogger.comtag:blogger.com,1999:blog-4009416706187449080.post-29854883188078269692018-07-30T04:44:34.901-05:002018-07-30T04:44:34.901-05:00That is great to hear, thank you for reading!
That is great to hear, thank you for reading!<br />Dr. Shwetha Priyadarshinihttp://www.healthyatra.com/doctors-in-india/online-appointment-dr-shwetha-priyadarshini-paediatric-nephrologist-with-email-id-apollo-hospitals-hyderabad-indianoreply@blogger.comtag:blogger.com,1999:blog-4009416706187449080.post-77497426238031839712018-06-07T05:12:04.264-05:002018-06-07T05:12:04.264-05:00Thank you, that was just an awesome post!!!Thank you, that was just an awesome post!!!Hepatic Encephalopathyhttp://www.healthyatra.com/diseases-and-conditions/hepatic-encephalopathy-definition-causes-symptoms-complications-and-cost-surgery-treatment-hospital-in-indianoreply@blogger.comtag:blogger.com,1999:blog-4009416706187449080.post-2744084072251383112018-05-02T10:21:28.234-05:002018-05-02T10:21:28.234-05:00Thanks for sharing that. It was fun reading it. :-...Thanks for sharing that. It was fun reading it. :-)Dr. Hari Raj Tomarhttp://www.healthyatra.com/doctors-in-india/online-appointment-dr-hari-raj-tomar-cardiac-electrophysiologist-medanta-hospital-gurugram-indianoreply@blogger.comtag:blogger.com,1999:blog-4009416706187449080.post-67847877503520637102012-10-05T04:59:44.500-05:002012-10-05T04:59:44.500-05:00its such a nice & Awesum blog provide info
h...<br />its such a nice & Awesum blog provide info <br />hope more people discover your blog because you really know what you’re talking about. Can’t wait to read more from you!<br />for more plz visit<br /><br /><a href="http://www.debtadvisors4u.com/" rel="nofollow"> debt management plan </a>Anonymoushttps://www.blogger.com/profile/08318796413964402394noreply@blogger.comtag:blogger.com,1999:blog-4009416706187449080.post-39647970975959519172012-10-05T03:06:59.651-05:002012-10-05T03:06:59.651-05:00It's a nice blog to provide a good information...It's a nice blog to provide a good information. You shared a really good information. I bookmarked this blog further more useful information. Thanks for sharing this.......... <a href="http://www.ppiclaim4me.com" rel="nofollow">Best PPI Reclaim</a>Ronithttps://www.blogger.com/profile/13040938910419926721noreply@blogger.comtag:blogger.com,1999:blog-4009416706187449080.post-29735711890546494042012-09-16T00:17:14.914-05:002012-09-16T00:17:14.914-05:00^^ lol, and I agree with your first point. Just i...^^ lol, and I agree with your first point. Just invest the money in an account you own and what you please (retirement, child's education, new home, etc.).<br /><br />Unless you are wealthy and are looking for tax breaks.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4009416706187449080.post-71992749267171304662012-05-22T15:48:24.966-05:002012-05-22T15:48:24.966-05:00I wasn't sure what a Coverdell was, so thanks ...I wasn't sure what a Coverdell was, so thanks for the info. I think both options are bad because what if you end up with a child that wants to join the military instead of going to college? If that's an only child, you get hit with penalties for saving the money!<br /><br />Secondly, the four years you spent in college should have included more writing and grammar classes because your skills are lacking.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4009416706187449080.post-88159325531923127622011-11-11T07:19:10.359-05:002011-11-11T07:19:10.359-05:00Excellent blog! I really love how it is easy on my...Excellent blog! I really love how it is easy on my eyes and the facts are well written. I have subscribed myself for latest blog posts.<br /><a href="http://newamsterdamlife.com" rel="nofollow">Juvenile Life Insurance</a>stave olionhttps://www.blogger.com/profile/08596968378050682168noreply@blogger.comtag:blogger.com,1999:blog-4009416706187449080.post-61008221144053195962011-11-10T07:49:37.292-05:002011-11-10T07:49:37.292-05:00529 plan is sounding great . Really, all reasons t...529 plan is sounding great . Really, all reasons to opt it is very logical.Thanks for such post.payday loans onlinehttp://www.paydayline.co.uk/noreply@blogger.comtag:blogger.com,1999:blog-4009416706187449080.post-5481277292923277452011-08-04T22:10:33.846-05:002011-08-04T22:10:33.846-05:00Just to clear up some points to others who stumble...Just to clear up some points to others who stumble upon this thread.<br /><br />Anonymous June 3, 2009 misses the point. If the kid gets control of the CESA and wants to blow the money they can. The funds could be used for anything and losing ~20% to taxes and penalties isn't going to be much of a disincentive.<br /><br />The good news is that you can setup the CESA so the kid doesn't get control, see Article V of IRS form 5305ea. In most cases the parent can maintain control until the account is liquidated.<br /><br />I also believe Anonymous June 3, 2009 is mistaken. Most of the saving for college sites agree with Rad that CESA assets are treated as belonging to the parent for financial aid. So you are only expected to use ~6% for college, not the ~20% that would apply to a student asset. This appears to have been a recent change so some sites still have the old infoAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4009416706187449080.post-85142961747766741082011-01-06T21:43:27.511-05:002011-01-06T21:43:27.511-05:00Thanks so much to everybody, it was easier to unde...Thanks so much to everybody, it was easier to understand how this plans work.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4009416706187449080.post-86767968236322985412011-01-03T21:58:15.410-05:002011-01-03T21:58:15.410-05:00Just to clarify a point made,
Assets in a Coverde...Just to clarify a point made,<br /><br />Assets in a Coverdell ESA *are* considered property of the student, which can reduce the student's financial-aid package. On the other hand, the assets in a 529 savings plan belong to the account owner. This is key from a financial aid perspective.<br /><br />You can transfer assets in a Coverdell ESA to a 529.<br />If you're making the switch for financial-aid reasons, make sure the transfer is completed before Dec. 31 of your child's junior year in high school.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4009416706187449080.post-36686141665401939222010-09-21T11:31:58.495-05:002010-09-21T11:31:58.495-05:00Hi Great post.
Can you mix both plans? for examp...Hi Great post.<br /><br />Can you mix both plans? for example, put $100 into Coverdell IRA and also another 100 to 529? If so, what would be the befit? <br /><br />Does anybody has 529 from the state of Georgia? If so, what is your experience?<br /><br />Thanks,<br /><br />DaveAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4009416706187449080.post-27891965008051900932009-06-03T17:09:19.583-05:002009-06-03T17:09:19.583-05:00I don't know why you are afraid your kid will ...I don't know why you are afraid your kid will blow the money. By rule, it has to be spent on Education expenses, or there is a tax penalty. It's not like they will buy a motorcycle or plane tickets with it. They might with their own money, but your Coverdell or 529 cash has to be spent on school.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4009416706187449080.post-21467609679020661162008-11-14T21:52:00.000-05:002008-11-14T21:52:00.000-05:00Don't forget the custodial account. That's a way ...Don't forget the custodial account. That's a way of saving money for your child - for education or anything else you want to use it for. There isn't the same tax benefit - this is a "trust fund" - but there aren't deposit limits either. http://www.babycenter.com/0_saving-for-college-custodial-accounts_1278801.bcAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4009416706187449080.post-81033815535186211672008-04-17T13:32:00.000-05:002008-04-17T13:32:00.000-05:00One other comment, in the SF Chronicle today, they...One other comment, in the SF Chronicle today, they published a report from Morningstar rating all the 529 plans. You can read it here: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/04/17/BU46106LGT.DTL<BR/><BR/>Looks like the Illinois Bright Start College program was the best rated.<BR/><BR/>I checked their site out, and they too have lost money in the past year as well. See their performance returns here: https://www.brightstartsavings.com/OFI529/AP/PerformanceInfo.do?term=ytdAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4009416706187449080.post-37686770685055409652008-04-17T13:26:00.000-05:002008-04-17T13:26:00.000-05:00One other very important point is that with all 52...One other very important point is that with all 529 plans, you're limited in selecting from the plan's limited range of mutual funds. In these past 6 months, almost all funds that I've reviewed have been going down. I put in some money about 6 months ago into the Fidelity plan for California, and we've lost money. <BR/><BR/>On the other hand, with the Coverdell, you can pick and choose ANY stock, mututal fund, or what have you. Right now, with this financial market, this is extremely important, as I said, most of the 529 funds have gone under water.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4009416706187449080.post-65004063831449779212008-04-08T15:25:00.000-05:002008-04-08T15:25:00.000-05:00Great post - very helpful stuff.We have a 8 month ...Great post - very helpful stuff.<BR/>We have a 8 month old daughter too and I am actually leaning towards opening a coverdell acct because of the following reasons:<BR/>1. "4. Distributions can be used for middle school, elementary or secondary school." - actually this is a great benefit if you consider all secondary expenses at college as well.<BR/>2. Its April already and I can still contribute the $2000/year for 2007. You can't do that in 529.<BR/>3. Much greater flexibility to choose your investment distributions - you can pretty much invest in any fund you like unlike 529s where the choices are very limited.<BR/><BR/>Having said that in a year or two we wont qualify for contributing to a coverdell account so I'll get a 529 account at that time. <BR/><BR/>Thoughts?Unknownhttps://www.blogger.com/profile/07399172646428982392noreply@blogger.comtag:blogger.com,1999:blog-4009416706187449080.post-25433314471080343132008-01-10T09:20:00.000-05:002008-01-10T09:20:00.000-05:00Anonymous: It has nothing to do with playing tric...Anonymous: It has nothing to do with playing tricks. It is pretty difficult to save money to pay for an entire college tuition. If you save enough for say the first 2 years, I see no problem with using financial aid to pay for the final 2 years, or use financial aid across all 4 years to subsidize what you've saved up. "People with money always playing tricks to get more" sounds like something someone would say who has trouble saving money and actually planning for their future. This is being smart with your money and using what's available so you can focus on actually studying and learning something, instead of "how in the hell am I gonna pay for next semester" during finals week. If your savings are wiped out by some unfortunate event, financial aid will still be available, there is no cap on how much the gov't will supply, it is based on individual student qualifications.<BR/><BR/>n the event something catastrophic has happened, take a step back, rebuild your savings and wait until your financially ready to go to school if you don;t have enough money and you don't qualify for financial aid.<BR/><BR/>I myself was stuck in that situaion and had to work through all 4 years of college because I could not get financial aid.<BR/><BR/>Don't use excuses, those get old pretty quick. Financial savinnes is not a trick, it's a skill... just sayingRadhttps://www.blogger.com/profile/05737938110592841070noreply@blogger.comtag:blogger.com,1999:blog-4009416706187449080.post-59123783929377199812008-01-09T17:25:00.000-05:002008-01-09T17:25:00.000-05:00Or you could not play tricks to get financial aid ...Or you could not play tricks to get financial aid that others may need more than you do, since you saved up money and they might have had their savings wiped out by some event beyond their control. Just saying.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4009416706187449080.post-23805237016783024402007-07-03T12:29:00.000-05:002007-07-03T12:29:00.000-05:00I've been gone for a while and I just saw these 2 ...I've been gone for a while and I just saw these 2 comments. I'm glad this post was helpful. This was the reason I started posting. It was dificult for me to find some of the information I was looking for when we had the baby, so I'm trying to put some of those things into easy to read posts. I know they get a little long sometimes, but Ihope you guys enojy them. Glad I could help guys.<BR/><BR/>Beam: I felt the same way about giving an 18 year old girl a large sum of money :) Good luck with the twins man.Radhttps://www.blogger.com/profile/05737938110592841070noreply@blogger.comtag:blogger.com,1999:blog-4009416706187449080.post-41045989211718958722007-05-12T19:21:00.000-05:002007-05-12T19:21:00.000-05:00Really really helpful. I have twin boys on the wa...Really really helpful. I have twin boys on the way and I have been researching the benefits of the Coverdell vs a 529 for a couple of days now. I agree that the Coverdell gives a lot more options but the idea of handing 2 18 year old boys a large sum of money I have limited control over was just an accident waiting to happen.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4009416706187449080.post-53410574681384193232007-03-17T23:03:00.000-05:002007-03-17T23:03:00.000-05:00I have an 8-month old son, I also chose the 529 fo...I have an 8-month old son, I also chose the 529 for reasons 4 and 5. I know that when I was 18, I might not have had the maturity to use the money wisely, so I like the fact that I remain in control of the money, both for distribution and for financial aid determination.<BR/><BR/>As for choosing a state plan, the special benefits for the plan in my does are not that great, so I ended up going with the Ohio 529 plan. The costs between the Ohio and Utah plans are comparable (both have funds run by Vanguard), but what I liked better about Ohio was that, for 100% equity options, Utah only had 2 choices, an S&P 500 and a diversified stock option. For Ohio, you can choose among 4 different plans, an aggressive growth, S&P 500, extended market, and developed international, in any proportion that you want. As I still have 18 years, I can be more aggressive with the Ohio plan than I could be with the Utah plan.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4009416706187449080.post-86798112493416632042007-03-14T12:06:00.000-05:002007-03-14T12:06:00.000-05:00Anonymous:First, congrats on the baby boy. Your in...Anonymous:<BR/><BR/>First, congrats on the baby boy. Your in for the ride of your life. I have a girl, so we can compare stories someday. <BR/><BR/>Thanks for the comment and for reading the post. I'm gald you found the post informative.<BR/><BR/>1. You are right about UT's 529 being 30bp lower than NY's. I am a New York resident and that was why we chose the plan. We get a state tax deduction of up to $5,000 because we are residents. The deduction goes up to $10K for married couples. Every state has different benefits and everyone should look into their state plan before making a choice, if they go with the 529.<BR/><BR/>2. About the savings in the child's name. Saving in the parents name will affect fin aid but not as much. As you mentioned, it reduces aid by 100% in the child's name while in the parents name it is less then 10%. <BR/><BR/>The way we see it, she is going to need money when she gets older, better that it in our name than hers so she can still get some benefits.<BR/><BR/>Thanks for the site by the way(lots of good info) and good point about the grandparents (or other trusted adults as you say) :) <BR/><BR/>Come back anytime.Radhttps://www.blogger.com/profile/05737938110592841070noreply@blogger.com