You can earmark virtually any type of account, from a checking account at your bank to a Roth IRA, as a college account for your child. Unfortunately though, not all of these accounts are created equal. The exact same mutual fund bought in one type of account may be subject to greater taxation than if bought in another account. Likewise, one account may hurt your chances of financial aid 4-5 times more than another.
The first step in choosing the right college account is to get your vocabulary nailed down. You need to know what the different accounts are and their basic features.
To get you started, you should review our profiles of the half-dozen major college accounts. If you’re tight on time, jump ahead to my article on choosing the best college account for your family.
