>> 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).
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