Comments on: Types of Education Savings Accounts and Which Account is Best

By: Ginger

Ginger — Fri, 22 May 2015 17:01:29 +0000

You can also use a combination of these accounts, assuming your child will be going to private schools. For example, save in a Coverdell for high school costs (which can cost a lot more than grammar school) and a 529 for college. Our income is still low enough that we are saving in our own retirement account (401k and IRA) but once we max those out, my next step is the coverdell.

By: Michelle

Michelle — Tue, 09 Sep 2014 01:54:00 +0000

I’m not sure how I feel about the child having access to the account at the age of 18. That just seems like a lot of responsibility for someone who might not be ready for that yet.

By: Taylor Lee

Taylor Lee — Fri, 05 Sep 2014 12:15:00 +0000

Another thing to consider regarding custody of the accounts is that colleges will often see student assets more as “fair game” than parental assets. For example, at my alma matter, expected student contribution would be something like 20% each year whereas expected parent contribution was probably 5% or less of asset value. That means that students who don’t have custody over college savings are more likely to get better financial packages (assuming the school determines those based on need).