To better compare the Kidira and other investments, we have prepared this chart to showcase their similarities and differences.
| Features |
Kid IRAŽ |
529(b) |
401(k) |
IRA |
Roth
IRA |
Whole
Life
Ins. |
Savings
Acct. |
Savings
Bonds |
| Tax-advantaged deposit |
 |
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| Tax-advantaged withdrawal |
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| Flexible Spending |
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| In child's name? |
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| Can be used as child's retirement account |
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| Can be used to invest in stock market? |
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| Can be used to invest in real estate? |
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| Can be used to invest the child's business ventures? |
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| Can be used to pay for day care expenses? |
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Can be used to pay for other school expenses
(supplies, books, materials, clothes, uniforms) |
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| Can be used to pay for private school tuition (elementary,high school, etc.)? |
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| Designed to pay for college tuition fees? |
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Can be used to pay for other college-related expenses
(food, rent, utilities, books, travel? |
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| $5000 per year @ 12% for 10 years* |
$87,744 |
$61,421 |
$65,808 |
$65,808 |
$61,421 |
$61,421 |
$28,743 |
$33,017 |
| Kidira Difference |
|
$26,323 |
$21,936 |
$21,936 |
$26,323 |
$26,323 |
$59,001 |
$54,727 |
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2/2/2010: Nationwide college tuition on the rise: It's kind of a perfect storm for students...referring to the double whammy of tuition hikes and threatened cuts in financial aid
2/1/2010: Parents, students on edge over soaring tuition: Tuition has been trending upward for years...The College Board says families are paying about $172 to $1,096 more in tuition and fees this school year. The national average for 2009-2010 is about $7,020...
2/1/2010: Website Offers Cutting Critique of Cal Tuition Hikes: Students are attempting to put faces and real stories to the tuition hikes and cutbacks by chronicling the impacts on a new website, Californiacuts.org
1/12/2010: Family investing after the recession: It all starts with saving. The earlier you do it the better...You could get a nasty surprise 18 years from now because the college would give less aid if you get the 529 plan.
IRAs for Kids?: Not only will modest contributions add up to significant savings...but it's also a way to teach your child an invaluable lesson - one he or she isn't likely to learn in school. - Smart Money
IRAs for Kids: It will only take a few seconds for you to realize how powerful this can be for your child's investing and financial future. - Motley Fool
Start your kids on the Roth road: ...a Roth IRA offers the greatest opportunity for growth because the money grows tax-free. Kids don't need the deferred taxes feature of a traditional IRA because they're probably not paying taxes. - Bankrate.com
Why Your Kids Need a Roth IRA: Looking for the perfect gift for your children? Open a Roth for them, and start them on the road to retirement security. - Kiplinger
