Advice from Nashville's Financial Guru Dave Ramsey
Dave Says
By Dave Ramsey
Author of Financial Peace and The Total Money Makeover
9/4/2006
"Getting started saving for kids' education."
Dear Dave,
My husband and I are to the point where we can start putting college money aside for our infant son. What kind of account do you recommend?
Ann
Dear Ann,
An Educational Savings Account is absolutely the best way to save for a child's college fund. The best way to fund the ESA is in a good growth stock mutual fund.
To be eligible you must make less than $200,000 annually - married filing jointly - and you can contribute up to $2,000 per child per year to the fund. The money will grow completely tax-free and must be used for education.
Here's the best part - fully funded and based on the average mutual fund return of 12%, this investment will grow to about $126,000 by the time he's ready for college!
- Dave
More About Dave
Dave Says Articles
Dave Ramsey History
Dave Ramsey.com
