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Greetings, 3seeds, and welcome. You wrote:

<<We've invested $500 for a Educational IRA in an index fund that charges $10/year. Now our state is going to begin a state-run college savings plan which we could invest quite a bit into each year. My question is: Are these state-run plans aggressive enough (our child is 2)for long term investors or would it be worth our while to continue with the E-IRA and manage the investment ourselves? Also, if we stop investing in the E-IRA, we're thinking we'll use the $500 to purchase stocks, pay the brokerage fee up front and avoid the yearly fee. OK idea? Thanks.>>

You may want to post this query on the Paying for College board at where these issues are discussed in detail. State plans vary, few are "aggressive," and usually they guarantee tuition only at a school within the state. As to the EIRA, the $500 cap on contributions virtually guarantee that the accumulation will barely pay for one year of education 18 years later.


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