Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (13) | Ignore Thread Prev | Next
Author: TchrP Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 8108  
Subject: Re: Education IRA Date: 4/9/1998 3:32 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
>> So is it correct that as long as an account is decided by me (the investor) to be an Education IRA account, I can manipulate the funds to areas of your desire
----------------------
Well, you can't just "decide" that an account is an education IRA, because an IRA of any sort has to follow certain rules and, in particular, be held by a custodian.

If you open an IRA in a bank, the bank itself is the custodian. If your IRA is at a mutual fund or a brokerage, the fund or the brokerage will designate a bank as the custodian. This, by the way, is the reason that IRAs usually have a small annual custodial fee. I have my IRA at Waterhouse Securities partly because they have an affiliated bank and don't charge the annual fee. The custodian of a brokerage IRA plays no role in the selection of the investments; it is just a technicality.

A brokerage IRA is the most flexible, because you can place the funds in almost any investment vehicle that the brokerage offers. That is, within a brokerage account you can hold stocks, bonds, mutual funds, REITs, a money market account and (sometimes) bank CDs if you wish.

To open a brokerage IRA, you first find a satisfactory (discount) brokerage that offers Education IRAs, and then apply for an account using the Education IRA application form (different from the form for a regular account or any other kind of IRA). Once the account is set up you can deposit funds and make whatever investments you want (within the range of investment opportunities offered by the brokerage and allowed in an IRA).
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (13) | Ignore Thread Prev | Next

Announcements

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.
2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
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.
Post of the Day:
Tax Strategies

TMFPMarti-Feeling Good
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement