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

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.

About the author:
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.

July 31, 2008 · Filed Under Online Education

Website Building Tools

If you interested in website building for your home business, here are some great tools you might find useful to learn how to earn online, step by step. These are the tools that I use after checking out a lot of tools in the market. Hope it helps you in some ways:

1. Site Sell University

If you aren’t familiar…CHECK IT OUT! If you are… Congratulations!

Site Sell University will offer you a goldmine of information about “pre-selling” your customers and, in my opinion ( and I don’t endorse too many businesses this strongly), they have the best web hosting service on the planet for new startups, complete with mailing list features, newsletter integration, promotional tools… and much more.

I have to be honest with you. When I first came across Site Sell University, I was very excited to try it. A lot of ordinary people were raving about it. I thought if they can do it, I can do it, too.

My excitement fizzled out after a while. The reason being, I wasn’t very focused with my goal. However, after thinking about it and resolving to Take Action, I saw great results. That’s why I’m very very thankful I found Site Sell University and I’m not ashamed to tell the whole world about it. Check out this video to learn about Site Sell University in just 3 minutes.

2. Maverick Money Makers

If you are a novice at making money online, Maverick Money Makers is one site that you might want to check out to learn step by step methods. I’m a member of this private money making society online and I have learned many things from it. It’s a wonderful tool to use whether you want to start a home business on a low budget, medium budget or a high budget.

What’s great about it is that it has tons of resources like videos, audios, ebooks and many other tools which makes learning so easy. It has quick money blueprints that you can implement and skillset videos that will help you develop your skills as you grow your business. Above all it has mindset coaching which is very vital for your success. Mindset represents 80% of our success and strategies only equal 20% so this is an amazing tool for your business growth and success.

It’s the best one you’ll ever need to create an income online. Yes, this online coaching club will charge you $97, but it has a 60 Day Money Back Guarantee with no questions asked so what have you got to lose? If you try it, you can create an income you have never imagined you can have. I’m an insider so I know. Of course you have to TAKE ACTION for it to work as this is not a get-rich-quick scheme type of club. TAKE ACTION and you’ll see RESULTS!

What you will discover inside the club (among many other things) is the ability to help other highly successful companies in promoting their products and get paid a handsome commission for every single bit of business you help them get.

It’s pretty cool that you don’t even need your own product isn’t it?

You see, companies are rapidly moving toward a new model of marketing, and that model is based on people like YOU to get the word out about their products.

You can do this anywhere in the World. You’re no longer an employee, you can be a partner! When you sign up now, you are becoming a partner of a company working for yourself! You can start building your financial future.

3. The Minisite Formula

Another great product for novices is The Minisite Formula. It is one product that teaches you step by step to build your online business. I’ve checked it out myself and I’ve learned many things from it. It’s a great tool to use whether you want to start a home business on a low budget or a high budget. What’s great about it is that it’s a video course which makes learning easy. This video course was launched in 2009 and has a lot of new information like Web 2.0 that are used these days.

The Minisite Formula is unlike any other course because Joel Peterson is not promising you a site that make thousand of dollars a day, or even $10 a day but only $3 a day.

The system is actually teaching to build a mini-site in half an hour that make you $3 a day consistently. You might think that $3 a day is not a lot but what if you have 100 sites or 1000 sites. It will be $9000 a month if you have 100 sites and $90000 a month if you have 1000 sites.

The main product contains over 5 hours of “Quality” step-by-step video training on EXACTLY how to build a mini site empire. Everything is organized to optimize the user learning experience and keep people excited. Extensive helps and resources are available in the download area. A Top-Notch product that is worth 10x the price.

4. Micro Niche Finder

If you have an online presence, one of the many ways that people will be able to find you is through the search engines. Search engines list you in their sites according to the keywords that you use in your website.

With Micro Niche Finder, you can get the jump on the competition and profit from a goldmine of under-the-radar niche markets.

Uncover Completely Overlooked Niche Markets that are so Profitable You’ll be Absolutely Shocked at How Easily You Found Them. (you’ll find so many profitable niche markets your biggest problem will be deciding which one you want to exploit first!)

Micro Niche Finder is guaranteed to “sniff-out” red hot, low competition, high demand keyword phrases that you can turn into quick profits. Here are just a few of the ways you can use Micro Niche Finder to create New Income Streams:

- Create articles to promote affiliate programs and collect regular commissions.

- Create Adsense content pages that pay you residual ad revenue.

- Create eBay feeder pages and make money when new users register for eBay.

- Create Squidoo Lenses and claim your share of the profits generated by the traffic.

- Create niche market private label rights packages and sell these rights for a quick profit.

- Find Unregistered Domain Names that have Built-In Profit Potential from Type In Traffic.

- Find New Markets that are just Begging for Hot New Info Products that You Can Create and Sell.

5. Fat Cat Blueprint

A great blueprint for anyone, whether novice or expert in making money online. If you want to start a high profit online business, Fat Cat Blueprint is a must read. It's simple, straightforward, and just about anyone can do it. I've personally checked out how his system works, so I know first hand that it can work for others. So check it out right now – grab this opportunity with both hands.

The above are the tools that have been profitable for me in my website building. You can copy this formula or you can make your own. However, remember that you need to FOCUS and be COMMITTED to your end goal. NEVER GIVE UP! Success won’t come overnight but I promise you, if you TAKE ACTION, you will see RESULTS!