This is just a quick note to let you know that I added another $2,000 to the Special Situations Real Money Portfolio, which is my son’s Coverdell Education Savings Account (ESA). The deposit was registered today by my broker. This is my third $2,000 deposit to this account.
As you might know, you can add up to $2,000 to a Coverdell ESA in 2006. There are several advantages to using a Coverdell ESA. In particular, I love the flexibility this type of account provides by allowing me to invest it in relatively low risk going private transactions without incurring any income taxes.
If you have a son or daughter, I encourage to research whether a Coverdell ESA might be right for you. You are free to use whatever broker or financial institution you want to open one of these accounts (as long as they support this account type).