Investing to help pay for possible private school?

[LMDROB]

Hi

I was curious about maybe starting a brokerage account to help cover costs for private school for my daughter if needed.  We are going to push to have her in a decent public school if possible, but never know.

I have a 529 plan going already, but was wondering if I started a brokerage account that I may be to get my money earning now for her to use when she reaches middle or probably high school.  Or if there is a better option there that I don't know about.

Thank you.

[nora]

I decided to try this by putting $5000 once a year into an Australian vanguard etf vts. It is coming up to the time when I need go add it for the year. By the time my child is high school age it should be enough to cover 5 yrs of private school. Not sure if this is a good approach though or not.

[Vagabond76]

Try a Coverdell account.  You can use the earnings, tax-free, to pay for private school.  They work the same as 529 plans, but the latter has to be used for college.  Also, with a Coverdell, you are not limited by the plan's investment choices.

You can set up an account for free at TD Ameritrade, then take advantage of the offer for commission-free ETF trades, including several Vanguard ETFs.  Vanguard no longer offers Coverdell plans, as they try to steer you towards 529 plans.