Quote:
Originally posted by TexLex
Say I have a more than $2000 to invest...would you suggest doing the Coverdale account first and then put the rest in the 529? The Coverdale account seems to be the way to go if you qualify...but what if (heaven forbid) the kid for whatever reason does not go to college? Same with the 529 plans - can you switch them to different kids? What if you have no other kid to switch the money to? Is there any possible way the kid could ever get his paws on the dough without our say so?
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The first $2000 in the Coverdale question is one hotly debated by people with far more knowledge than I. I believe there's an extensive discussion of just that question on the Saving for College website.
One of the nice things about 529s is that you can roll them over to other people: siblings, grandchildren, godchildren, the cute poolboy working his way through school, etc., as long as its used for educational expenses. I believe one of the issues with the Coverdale is exactly your last question: a Coverdale goes to the kid by some age (30? 35?) no matter what, while a 529 stays under the control of the owner always (except upon death, of course, and even then it doesn't have to go to the kid).
