Sorry about the delay with Day 7. I had some technical problems last night, but now I’m up and running again so the 30 Days to Becoming a Better Investor series is back on track.
Today, I want to discuss maximizing your returns by being tax efficient. You probably already know about 401ks, IRAs, 529s, and Roth IRAs. Let introduce you to another tax efficient vehicle. It is called the
Coverdell Education Savings Account. If you are saving for someones education, I highly recommend you consider opening a Coverdell Education Savings Account (ESA). This ESA is so flexible you could even turn it into a mini hedge fund like I did and use it to invest in risk arbitrage opportunities, such as going private transactions.
To learn about the details of how a Coverdell Education Savings Account works, visit my October 2004 archived post on this topic.