"Empty pockets never held anyone back. Only empty heads and
empty hearts can do that." Norman Vincent Peale

There are currently three types of "education" savings accounts; 529 Plans,
Coverdell / Education IRA's and Uniform Gift to Minors Act accounts. Below is a
brief description of each. Please contact us below for more detailed information.

529  Plans:  The 529 Plan is frequently called the Grandparents Plan because it permits
them to contribute to their grandchildren's college education, and reduce their estate
asset value at the same time. If they should need the use of those funds, they are able
to pull them back out of the plan; otherwise the grandchildren may use the money
only for qualified higher education expenses.

Coverdell / Education IRA:  Since many of our clients want to save for elementary
and/or secondary education expenses as well, we frequently recommend a combination
of an Education IRA (Coverdell Education Savings Account) and a 529 Plan.  The Coverdell
IRA can be used for elementary, secondary or college education, but withoutthe benefit
of reducing estate values.  There are some income restraints and penalties for over contributing, so be sure to check with us or your tax professional to see what may
apply to your situation.

FRA President, Elaine Kiernan, is certified as a 529 Plan Specialist. She will
formulate the most suitable education savings plan for your specific needs.

Uniform Gift to Minors' Act or UGMA: The purpose of having an UGMA is to provide future
financial benefit to a minor child, while at the same time providing a limited tax benefit to
the custodian.  A parent or a grandparent is usually the custodian of the account for the
benefit of the minor child.  These accounts have historically been established to fund future college expenses.  One glaring aspect against this type of account is that the minor child, upon
reaching the age of majority, can legally take possession of the assets in the account, and use them for whatever purpose they want (which may be radically different than what the custodian intended.)  A UGMA may be an ideal way to save for college after the 529
Accounts and Coverdell IRA's have been fully funded.