Savings plan for primary school?

March 21, 2008 2:36 PM

My child will be switching to a very expensive private elementary school. I have already prepaid the tuition for next year, but what is my best strategy to pay for the following years? Specifically, what is the best way to invest about $2K/month so that I can withdraw the needed lump sum once a year? 529 plans are for college expenses only, and Coverdell education-savings account maxes out at $2k/year.
posted by lmY2K to education (5 comments total)

Are you specifically asking if there's a subsidized or tax-offset investment vehicle for this, similar to a 529 plan? If so, the answer is definitely no.
posted by gum at 3:30 PM on March 21

Seems to me that's not what lmY2K is asking, gum. She or he would probably like what is bascially a savings account, but with higher interest, so that a substantial amount of money can earn a little something while it accumulates over the course of a year.
posted by orange swan at 5:27 PM on March 21

Moneymarket mutual fund. Add as much as you want take as much as you need.
posted by Gungho at 6:12 PM on March 21

Maybe a CD ladder? Although I don't know if the term lengths would work out for you.

You could also use high-yield savings accounts from something like ING Direct or Emigrant. Not a super-duper return but very liquid.
posted by SuperNova at 10:14 PM on March 21

We usually used Academic Management Service to pay our son's private school tuition. That has the adantage, as I recall, that your payments are insured against the possibility that the student withdraws, for whatever reason. It's sort of the opposite of what you are asking for (chances are your school has made you aware of it if it's an option).
posted by thomas144 at 6:56 AM on March 22