This is Mark Warner with and today I want to comment about a recent article that was in the Dallas Morning News.  A column written by Dave Ramsey.  He commented in the column about Educational Savings Accounts, or ESAs, and how about how inflexible they are in terms of what you can do with the money in case your child doesn’t want to go and get a secondary education after high school.

The money that you would pull out would cost you about 25% penalty and then you have to pay taxes on the income.  However, what is available out there are other more flexible plans such as 529 Plans.  Several of the big mutual fund outfits out there provide these 529 Plans in various states.  You don’t have to buy the 529 Plan that’s offered in your state, but the flexibility is there from a 529 Plan that allows you to move the beneficiary of those funds from an education standpoint to somebody else in the family.  Such as, it’s mentioned here, to a son, a daughter, a brother or sister, a son-in-law, daughter-in-law, mother-in-law, brother –in-law, sister-in-law, or the spouse of the beneficiary.

There are lots of different people that you can offer your 529 Plans to if your son or your daughter decide not to go to college.  Plus the fact that if you decided that you wanted to take the money and use it for golf lessons or some type of an educational standpoint you could do that with a 529 Plan.

This is Mark Warner with  If you’d like to comment about this you can send comments to or to  Again this is Mark Warner with

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