Message Font: Serif | Sans-Serif
No. of Recommendations: 1
ergonomicalistic: "Right now I am looking at opening a CoverDell to self direct, max that out (or close to) and compound above what a 529 plan would (or would not return). Goal is to having about $100k total in ~18 years via a 10% annual rate via smart investing and low fees."

Given that maximum Coverdell ESA contribution is "$2,000 per beneficiary per year combined from all sources", that seems like an ambitous goal.

$2,000 per year invested Jnauary 1 each year and earming 10% annually (net of costs), would, after 18 full years, be worth $100,318.18 - $318.18 over your goal, but only if you start with the maximum (not close to) and continually fund at maximum level. Start with $1900 in year one, and you fall short.

We have had good success with the Utah 529 plan.

Regards, JAFO
Print the post  


Paying For School Guide
Trying to Tackle Tuition? The Motley Fool's Guide to Paying for School will help you fight those rising education costs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.