From the moment we hold our children for the first time, our perspective changes. We immediately start thinking about how to prepare them for the future and one of the most important matters is their college education. Saving for your children’s education is an advantage for them and for you too, because you never know how your financial situation can change. When you start saving for your child’s college education, you can secure their future.
There are several ways of saving for your children’s future; among them is the Education Contribution Account (ECA). At Popular, we offer two product alternatives, one alternative is the Regular ECA, which is a fixed deposit inversion where you can open this account with a $500 minimum deposit deductible from your income tax return. Another Regular ECA account benefit is that the interest rate is guaranteed during the deposit term and the FDIC insures both the principal and the interests.
Another option besides the Education Contribution Account is an Educational Stock Market Account. The difference between Regular ECA and this account is that its performance is based on the S&P 500 index, that the FDIC insures only the principal and it’s a 5-year investment. Just like with an ECA account, the initial minimum deposit is $500. Both ECA products represent an additional deduction on your IRA contributions over income.
With any of these accounts you can start to plan for your children’s education and future; choose the one that better fits your needs and start saving. Explain to your kids the importance of saving, the benefits and the results of a college education in their future.
Look for more information about ECA accounts and their value visiting http://www.popular.com/ira-educativa#GA=Educational_Contribution_LP